The new year is right around the corner, and you might be wondering if 2024 will be the right time for you to buy or sell a home. If you want to make the most informed decision possible, it is important to know what the experts have to say about what is ahead for the housing market.
Spoiler alert: the projections may be better than you think. Here is why.
Experts Forecast Ongoing Home Price Appreciation
As you can see in the orange bars on the left, on average, experts forecast prices will end this year up about 2.8% overall, and increase by another 1.5% by the end of 2024. That is big news, considering so many people thought prices would crash this year.
The truth is, prices didn’t come tumbling way down in 2023, and that is because there just were not enough homes for sale compared to the number of people who wanted or needed to buy them, and that inventory crunch is still very real. This is the general rule of supply and demand, and it continues to put upward pressure on prices as we move into the new year.
Looking forward, experts project home prices will continue to rise next year, but not quite as much as they did this year. Even though the expected rise in 2024 is not as big as in 2023, it's important to understand home price appreciation is cumulative.
In simpler terms, this means if the experts are right, according to the national average, after your home's value goes up by 2.8% this year, it should go up by another 1.5% next year. That ongoing price growth is a big part of why owning a home can be a smart decision in the long run.
Projections Show Sales Should Increase Slightly Next Year
While 2023 has not seen a lot of home sales relative to more normal years in the housing market, experts are forecasting a bit more activity next year. Here is what those same three organizations project for the rest of this year, and in 2024 (see graph below):
While expectations are for just a slight uptick in total sales, improved activity next year is a good thing for the housing market, and for buyers and sellers like you. As people continue to move, that opens up options for hopeful buyers who are looking for a home.
So, what do these forecasts show?
The housing market is expected to be more active in 2024. That may be in part because there will always be people who need to move. People will get new jobs, have children, get married or divorced – these and other major life changes lead people to move regardless of housing market conditions. That will remain true next year, and for years to come. And if mortgage rates come down, we’ll see even more activity in the housing market.
If you are thinking about buying or selling, it is important to know:
What the experts are forecasting for the future of the housing market.
When you are in the know about what is ahead, you can make the most informed decision possible.
What is going on in the local real estate market.
When you understand what is going on the in the local real estate market you can make better decisions as you enter into real estate transactions.
Have skilled, knowledgeable real estate advisors representing you.
Real estate transactions are complex, and often emotion filled. You want to be represented by real estate advisors who have the skills and knowledge to lead you through your real estate transactions while helping you mximize your return-on-investment.
The Real Estate Advisors | REALTORS® from DFWREAdvisors Group meet all those criteria and more. Let's chat about the latest forecasts together, and craft a plan for your next move.