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As we enter the second half of 2024, there’s one big question on everyone’s minds right now: what’s ahead for the housing market?
With an upcoming Presidential election, affordability challenges, and a whole lot of confusing headlines out there, there are a lot of mixed feelings about the state of the housing market this year.
But no matter what’s happening in real estate, this will always remain true: the most powerful tool you have to beat your competition is knowledge.
So, let’s take a deep dive into the latest housing market projections so you have the confidence to educate your clients and crush your goals this year.
SECOND HALF OF 2024 HOUSING MARKET PROJECTIONS
Taking all of that into consideration, here’s what industry experts anticipate for the 2024 housing market.
Will Home Prices Go Up or Down?
Plus, the newest data shows an uptick in price reductions for active listings in recent months.
So, what does the future hold for home prices? Will home prices fall?
With the latest expert projections, this is what we can gather: home prices will continue to climb moderately for most markets around the country.
Why are home prices still going up? It all comes down to the number of homes for sale. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), puts it simply:
“One thing that seems to be pretty solid is that home prices are going to continue to go up, and the reason is that we don’t have housing inventory.”
While there are more homes on the market compared to the past couple of years, it’s still not enough overall to meet today’s buyer demand. This will keep pushing prices up.
What’s Going to Happen with Mortgage Rates?
The biggest piece of advice you can give to anyone who asks is this: if they’re waiting for rates to go back down to where they were in 2020-2022, they’ll be waiting a long time.
But there is good news: experts project mortgage rates should come down later this year as inflation continues to cool.
What Will Happen with Home Sales in 2024?
But with more homes available, we’re expecting a few more sales this year compared to 2023.
Lawrence Yun, Chief Economist at NAR, said this:
“In the second half of 2024, look for moderately lower mortgage rates, higher home sales, and stabilizing home prices.”
It won’t be a massive uptick, but it does show that the market is holding steady.
Will the Housing Market Crash This Year?
Ultimately, it comes down to supply and demand.
While you may have seen some recent headlines that say a crash is possible, context is important.
As Business Insider says:
“Though many Americans believe the housing market is at risk of crashing, the economists who study housing market conditions overwhelmingly do not expect a crash in 2024 or beyond.”
Although we’ve seen an uptick in inventory over the past year, we’re still under supply. When the housing market crashed in 2008, there was an oversupply of homes. So, rest easy. There won’t be a crash, and you can use this information to ease any clients’ worries that one could be on the horizon.
WHAT DOES THIS MEAN FOR BUYERS & SELLERS FOR 2024?
But what about the rest of this year?
With experts projecting a rise in inventory and a decline in mortgage rates so long as inflation continues to ease, data suggests we’re heading for a more stable and predictable market than we’ve seen in the last few years.
There is still a lot of motivation for buyers and sellers in the market who are ready, willing, and able, and that’s not expected to change in the six months.
Bottom Line
Industry experts don’t expect any major shifts for the rest of the year. In fact, we’re looking at a steady decline in mortgage rates and a moderate, more normal climb in home prices and sales.
