New Home Price Forecasts for 2024
Over the past few months, experts have revised their 2024 home price forecasts based on the latest data and market signals, and they’re even more confident prices will rise, not fall. So, let’s see exactly how experts’ thinking has shifted – and what’s caused the change.
2024 Home Price Forecasts: A Positive Outlook
As we step move farther into 2024, experts are increasingly optimistic about the housing market. Recent data and market signals have led to revised forecasts, and the consensus is clear: home prices are expected to rise, not fall.
2024 Home Price Forecasts: Then and Now
Let's take a closer look at how experts' predictions have evolved. The chart below compares their initial 2024 forecasts, made at the end of 2023, with their latest projections:
Initially, experts expected modest price increases. However, their latest forecasts reveal a more bullish outlook, with significant upward revisions. This shift is driven by two key factors: limited housing inventory and changing mortgage rates.
Factors Driving Upward Pressure on Prices
The housing market has long been plagued by low inventory, a trend that continues to influence prices. As Business Insider notes, "Low home inventory is a chronic problem in the US. This has generally kept home prices up..."
While inventory remains tight, mortgage rates have seen a notable change. Rates have declined since their peak in October, and further decreases are anticipated throughout the year. This reduction in rates, coupled with increased buyer demand, has led experts to anticipate stronger price growth than previously expected.
Looking Ahead: The Role of Mortgage Rates
Real estate experts regularly adjust their forecasts to reflect market shifts. As the year progresses, continued revisions are likely. A key factor to watch is mortgage rates. If rates continue to trend downwards, as projected, this could further boost buyer demand and drive prices even higher.
Understanding the Dynamics: Supply and Demand
Ultimately, it all comes down to supply and demand. With limited supply, any increase in demand is likely to push prices upwards. This ongoing imbalance is a driving force behind the revised forecasts.
Bottom Line: A Positive Outlook
Initially conservative forecasts have given way to a more optimistic outlook. Experts now anticipate more significant price growth in 2024. For those navigating the market, connecting with a local real estate agent can provide valuable insights into what to expect in your area.
