Housing Market Forecast: What’s Ahead for the 2nd Half of 2024
As a real estate attorney on Long Island, NY, my mission is to serve and work closely with mortgage and real estate professionals and their clients. As we enter the second half of 2024, many of you are eager to understand what lies ahead for home prices, mortgage rates, and home sales. Whether you’re considering buying, selling, or simply curious about market trends, here’s a comprehensive look at what experts are forecasting 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 upcoming months. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), provides clarity:
“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 levels have improved compared to the past couple of years, they remain relatively low. This persistent shortage of homes will continue to apply upward pressure on prices. The silver lining for buyers is that we won’t see the dramatic price surges experienced during the pandemic. Instead, prices will climb steadily, offering a more stable market environment.
For potential buyers, entering the market sooner rather than later could still be beneficial. With prices expected to continue their gradual ascent, purchasing a home now might save you money in the long run. Plus, you can be confident that your home’s value will appreciate over time.
Mortgage Rates Are Forecasted To Come Down Slightly
One of the most encouraging pieces of news for both buyers and sellers is the anticipated slight decrease in mortgage rates. According to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR, rates are expected to dip modestly.
For buyers, even a small reduction in mortgage rates can significantly lower monthly payments, making homeownership more affordable. For sellers, lower rates will likely attract more buyers back into the market, helping to sell homes faster and possibly at higher prices. This reduction in rates may also motivate sellers who have been hesitant due to the current rates to finally make a move.
Home Sales Are Projected To Hold Steady
In 2024, home sales are expected to remain stable or even increase slightly compared to last year. The forecast from Fannie Mae, MBA, and NAR suggests an average of 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:
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“Job gains, steady mortgage rates, and the release of inventory from pent-up home sellers will lead to more sales.”
With job growth, anticipated lower mortgage rates, and more inventory entering the market, we can expect a slight uptick in home sales. This means more opportunities for buyers to find their dream homes and for sellers to connect with motivated buyers.
What This Means for You
Conclusion
The second half of 2024 promises to be an exciting time in the housing market, with steady home prices, slightly lower mortgage rates, and stable home sales. Whether you’re buying or selling, understanding these trends can help you make informed decisions.
As a dedicated real estate attorney, my goal is to provide expert guidance and support to mortgage and real estate professionals and their clients. If you’re ready to take the next step or simply want more information, let’s connect. Together, we can navigate this dynamic market and turn your real estate goals into reality.
Feel free to reach out for personalized legal advice and support. Let’s make your home-buying or selling journey a success!
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Stay tuned for more updates and insights on the housing market. Together, we can make the best decisions for your real estate journey! ???