Housing Market Forecast for the 2nd Half of 2024

As we head into the second half of 2024, Westchester homeowners and aspiring buyers are likely curious about what's ahead for the housing market. Here's a breakdown of expert predictions for home prices, mortgage rates, and home sales:

Home Prices: Moderate Climb Expected

Experts forecast a more balanced pace of growth for home prices in Westchester. While the dramatic increases seen during the pandemic are unlikely to repeat, prices are still expected to rise due to ongoing low inventory.

Data from the National Association of Realtors (NAR) confirms this trend. According to NAR Deputy Chief Economist Jessica Lautz,

"home prices are likely to continue to rise because there just aren't enough homes for sale."

The good news for potential buyers is that the market is stabilizing. While prices will likely continue to climb, the rate of increase is projected to be more manageable. Early entry into the market could lead to long-term savings, and experts predict continued appreciation for your property value.

Mortgage Rates: Potential for Slight Decrease

There's positive news for both buyers and sellers regarding mortgage rates. Forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and NAR suggest a slight decrease in rates.

Even a small drop in mortgage rates can significantly impact your monthly payments if you're buying. For sellers, lower rates can attract more buyers, potentially leading to faster sales and potentially higher offers. If you've been hesitant to sell due to current rates, a decrease could provide the push you need.

Home Sales: Poised for Stability

The number of home sales in Westchester is projected to remain steady or experience a slight increase in 2024 compared to last year.

The average forecast from Fannie Mae, MBA, and NAR predicts around 5 million sales in 2024, exceeding the 4.8 million homes sold in 2023. According to NAR Chief Economist Lawrence Yun, "job gains, steady mortgage rates, and the release of inventory from pent-up home sellers will lead to more sales."

The Bottom Line

The Westchester housing market in the second half of 2024 is expected to be one of moderate price growth, potentially lower mortgage rates, and stable or slightly increased sales activity.