The new year has arrived, and you may be thinking if 2024 is the best time to purchase or sell a property. If you want to make the best selection possible, you should know what the experts think about the property market’s outlook. Note that the projections may be more accurate than you expect. Here’s 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’s 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’s because there just weren’t 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 isn’t as big as in 2023, it’s important to understand that 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 hasn’t 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’s 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 indicate? In 2024, the housing market is predicted to be more active. That might be because there will always be individuals who need to relocate. People will change professions, have children, marry or divorce – these and other important life events will cause people to relocate regardless of home market conditions. That will continue to be true this year and in the years ahead. And if mortgage rates fall, the housing market will heat up even more.
If you’re thinking about buying or selling, it’s important to know what the experts are forecasting for the future of the housing market. When you’re in the know about what’s ahead, you can make the most informed decision possible. Contact an agent at Ruhl&Ruhl today to chat about the latest forecasts together, and craft a plan for your next move.
Source: Keeping Current Matters