What's Ahead for the 2nd Half of 2024?

Believe it or not, the year is already half over! So if you made "selling or buying a home" your goal for 2024 and have yet to do so, we're here to help. Sellers, you need to be aware of your competition and the mindset of buyers. Buyers, you want to be appealing to sellers while still making smart financial decisions.There are three major factors that come into play for everyone in our current market: Home Prices, Mortgage Rates, and Inventory. We see changes every month, so professional predictions are critical if you want to be competitive. As we move into the second half of 2024, here’s what experts say you should expect.

Home Prices Are Expected To Climb Moderately

Home prices are forecasted to rise at a more normal pace, unlike the major spikes we have been seeing in the past few years. The graph below shows the latest forecasts from seven of the most trusted sources in the industry:

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The reason for continued appreciation? Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:

“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 inventory is up compared to the last couple of years, it’s still low overall. And because there still aren’t enough homes to go around, that’ll keep upward pressure on prices.

If you’re thinking of buying, the good news is you won’t have to deal with prices skyrocketing week to week like they did during the pandemic. Just remember, prices aren’t expected to drop. They’ll continue climbing, just at a slower pace.

So, getting into the market sooner rather than later could still save you money in the long run. Plus, you can feel confident experts say your home will grow in value after you buy it. 

Though we're still in a seller's market, the right agent will prepare and market your property to the fullest. It takes expert know-how to stay ahead of the curve, rather than just coast along with typical market trends. 

Mortgage Rates Are Forecast To Come Down Slightly

One of the best pieces of news for both buyers and sellers is that mortgage rates are expected to come down a bit, according to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR (see chart below):

No Caption ReceivedWhen you buy, even a small drop in mortgage rates can make a big difference in your monthly payments. For sellers, lower rates will bring more buyers back into the market, which can help you sell faster and potentially at a higher price. Plus, it may help you get off the fence, if you’ve been hesitant to sell due to today’s rates.

Inventory is Projected to Hold Steady

For 2024, the number of home sales will be about the same as last year and may even rise slightly. The graph below compares the 2024 home sales forecasts from Fannie Mae, MBA, and NAR to the 4.8 million homes that sold last year:

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The average of the three forecasts is about 5 million sales in 2024 – a small increase from 2023. Lawrence Yun, Chief Economist at NAR, explains why:

“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.”

With more inventory available, a few more homes are expected to be sold this year compared to last year. This means competition between buyers won't be as fierce as it once was. It also means potential sellers won't have such a fear of "where will I go if I do sell?"

All of this to say, more and more people will be able to move in the second half of 2024. Let's work together to make sure you’re one of them!

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