Housing Market Forecast: What’s Ahead for the 2nd Half of 2024

As we move into the second half of 2024, the housing market continues to be a hot topic for both buyers and sellers. Understanding the trends and forecasts can help you make informed decisions about your next move. Here's what experts are saying about home prices, mortgage rates, and home sales for the rest of the year.

Home Prices Are Expected to Climb Moderately ??

Home prices are forecasted to rise at a more normal pace in the coming months. According to Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR):

“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 has increased compared to the last couple of years, it remains low overall. This scarcity continues to put upward pressure on prices. The good news for buyers is that we won't see the extreme price spikes experienced during the pandemic. Prices are expected to climb but at a slower, more manageable rate.

Why does this matter?

• For Buyers: Entering the market sooner can save you money in the long run as home values are expected to appreciate.
• For Sellers: Steady price appreciation ensures that your property will continue to grow in value.

Mortgage Rates Are Forecast to Come Down Slightly ??

One of the most encouraging pieces of news for both buyers and sellers is that mortgage rates are expected to decrease slightly. This prediction comes from respected sources like Fannie Mae, the Mortgage Bankers Association (MBA), and NAR.

Impact of Lower Mortgage Rates:

• For Buyers: Even a small drop in mortgage rates can significantly reduce your monthly payments, making homeownership more affordable.
• For Sellers: Lower rates will likely attract more buyers back into the market, helping you sell your home faster and potentially at a higher price.

If you’ve been hesitant to buy or sell due to current rates, this forecast offers a promising outlook. Lower mortgage rates can ease the financial burden and open up more opportunities in the housing market.

Home Sales Are Projected to Hold Steady ??

The number of home sales in 2024 is expected to remain stable, with a slight increase compared to last year. The average of forecasts from Fannie Mae, MBA, and NAR suggests about 5 million home sales this year, up from the 4.8 million homes sold in 2023.

Lawrence Yun, Chief Economist at NAR, explains the factors driving this trend:

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

What does this mean for you?

• For Buyers: More inventory and stable sales mean more choices and opportunities to find your dream home.
• For Sellers: Increased buyer activity and stable sales projections can help ensure a smoother selling process.

The Bottom Line

The housing market is showing signs of stability and moderate growth. Home prices are set to rise at a normal pace, mortgage rates are expected to come down slightly, and home sales are projected to hold steady or even increase slightly.

Whether you’re considering buying or selling, now is a great time to make your move. Understanding these trends can help you navigate the market with confidence.

Let's work together to make sure you're well-informed and ready to take advantage of these positive trends. If you have any questions or need personalized advice on mortgage financing, feel free to reach out. I'm here to help you achieve your homeownership dreams! ????

If you’re ready to dive into the housing market or simply want to understand how these trends affect you, drop me a message. Let’s demystify the market together and make your next move a successful one!

Best regards,

Greg Gale - Senior Loan Officer

Nova Home Loans