As we approach the new year, the burning question on many minds is whether 2024 is the optimal time to buy or sell a home. To guide you in making the most informed decision, we’ve delved into expert opinions on the future of the housing market. Brace yourself, the projections are more promising than you might have anticipated.

Ongoing Home Price Appreciation: A Positive Outlook

Dive into the latest home price forecasts provided by key players such as Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR):

The consensus among experts is clear. On average, home prices are expected to wrap up this year with a robust 2.8% increase and continue their ascent by an additional 1.5% by the close of 2024. Contrary to widespread beliefs of a market crash, 2023 witnessed no significant plummet in prices. This resilience is attributed to a shortage of available homes compared to the substantial demand, a persistent imbalance driving prices upward. As we step into the new year, this rule of supply and demand is anticipated to maintain its influence.

While the projected rise in 2024 might not match the heights of 2023, it’s crucial to recognize that home price appreciation is cumulative. In simpler terms, if the experts are accurate, after witnessing a 2.8% increase in your home’s value this year, you can expect another 1.5% rise in the coming year. This consistent growth underscores the long-term financial benefits of homeownership.

Sales Projections Signal a Slight Uptick

Although 2023 has not seen a surge in home sales compared to standard market conditions, experts foresee increased activity in the coming year. Referencing the graphs below, provided by Fannie Mae, MBA, and NAR, the outlook is promising:

Anticipate a modest rise in total sales, a positive development for both the housing market and individuals navigating the buying and selling landscape. This increased activity provides more options for prospective buyers actively seeking their next home.

What Do These Forecasts Mean?

The housing market is poised to be more active in 2024, fueled in part by the constant flux of life events prompting individuals to move. Whether due to job changes, family expansions, or other significant life milestones, people will continue to relocate irrespective of market conditions. Furthermore, if mortgage rates experience a decline, we can expect heightened activity in the housing market.

Bottom Line: Make Informed Decisions

Whether you’re contemplating a purchase or sale, staying informed about the housing market’s future is paramount. Armed with insights into the latest forecasts, you can make decisions that align with your goals. Let’s discuss these forecasts together and create a strategic plan for your next move.