Expert Home Price Forecasts for 2024 Revised Up
Pricing Laura Miller Edwards Realty Group March 5, 2024
Pricing Laura Miller Edwards Realty Group March 5, 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.
The chart below shows what seven expert organizations think will happen to home prices in 2024. It compares their first 2024 home price forecasts (made at the end of 2023) with their newest projections:
The middle column shows that, at first, these experts thought home prices would only go up a little this year. But if you look at the column on the right, you'll see they've all updated their forecasts and now think prices will go up more than they originally thought. And some of the differences are major.
There are two big factors keeping such strong upward pressure on home prices. The first is how few homes are for sale right now. According to Business Insider:
“Low home inventory is a chronic problem in the US. This has generally kept home prices up . . .”
A lack of housing inventory has been pushing prices up for a long time now – and that’s not expected to change dramatically this year. But what has changed a bit is mortgage rates.
Late last year when most housing market experts were calling for home prices to rise only a little bit in 2024, mortgage rates were up and buyer demand was more moderate.
Now that rates have come down from their peak last October, and with further declines expected over the course of the year, buyer demand has picked up. That increase in demand, along with an ongoing lack of inventory, is what’s caused the experts to feel the upward pressure on prices will be stronger than they expected a couple months ago.
Real estate experts regularly revise their home price forecasts as the housing market shifts. It’s a normal part of their job that ensures their projections are always up-to-date and factor in the latest changes in the housing market.
That means they’ll continue to revise their projections as the housing market changes, just as they’ve always done. How those forecasts change next is anyone’s guess, but pay attention to mortgage rates.
If they trend down as the year goes on, as they’re expected to do, that could lead to more buyer demand and even higher home price forecasts.
Basically, it’s all about supply and demand. With supply still so limited, anything that causes demand to go up will likely cause prices to go up, too.
At first, experts believed home prices would only go up a little this year. But now, they've changed their minds and forecast prices will grow even more than they originally thought. Let’s connect so you know what to expect with prices in our area.
This blog post previously appeared on https://www.simplifyingthemarket.com/en/2024/02/22/expert-home-price-forecasts-for-2024-revised-up?a=106260-312309902871c1f0d820820f58bf8fde. The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. and the Laura Miller Edwards Realty Group do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. and the Laura Miller Edwards Realty Group will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
Stay up to date on the latest real estate trends.
Buying Tips
If you’re trying to decide if you’re ready to buy a home, there’s probably a lot on your mind. Here are a few questions that can give you clarity on whether you’re rea… Read more
For Sellers
If your listing expired and your house didn’t sell, it’s totally natural to feel a mix of frustration and disappointment. And as you’re working through that, you’re pr… Read more
Home Inspections
While you may have a general idea of what an inspection is, maybe you’re not sure why you need one or how it’s different from an appraisal. Here’s an explainer of each… Read more
Housing Market Updates
As we move into the second half of 2024, here’s what experts say you should expect for home prices, mortgage rates, and home sales.
Buying Tips
There's no denying it's gotten more challenging to buy a home, especially with today's mortgage rates and home price appreciation.
Luxury Market
If you’ve been looking for a home at the high end of your market, but haven’t found the right one, you may have put your search on hold. But according to recent data, … Read more
For Sellers
June is a busy month in the housing market because a lot of people buy and sell this time of year.
Home Buying
An expert’s insights will help you avoid some of the most common mistakes homebuyers are making right now.
Pricing
The asking price for your house can impact your bottom line and how quickly it sells.
Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact us today.