The Latest 2024 Housing Market Forecast

Real Estate Forecast Dori Wittrig November 27, 2023

The Latest 2024 Housing Market Forecast

The new year is right around the corner, and you might be wondering if 2024 will be the right time to buy or sell a home. If you want to make the most informed decision possible, it’s important to know what the experts have to say about what's ahead for the housing market. Spoiler alert: the projections may be better than you think. Here’s why.

Experts Forecast Ongoing Home Price Appreciation

Take a look at the latest home price forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR):

 

 

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 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 show? The housing market is expected to be more active in 2024. That may be in part because there will always be people who need to move. People will get new jobs, have children, get married or divorced – these and other major life changes lead people to move regardless of housing market conditions. That will remain true next year, and for years to come. And if mortgage rates come down, we’ll see even more activity in the housing market.

Bottom Line

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. Let's chat about the latest forecasts together, and craft a plan for your next move.


Recent Blog Posts

Wine Cellars and Tasting Rooms: Elevating the Culinary Experience in Fountain Hills Homes

A Taste of Luxury and Sophistication.

Local Events

Cactus League Spring Training 2024

A Grand Slam Tradition Continues in Arizona!

Local Events

“Tour de Scottsdale" Gear up for your next challenge

Gear up for an exhilarating ride through the heart of Scottsdale Tour de Scottsdale. Scheduled for Saturday, April 13, 2024,

Local Events

Spring Fountain Festival of Fine Arts & Crafts

Immerse Yourself in Art and Culture at the Annual Fountain Festival of Fine Arts & Crafts

Home Trends

Embrace the Future: Top Decorating Design Trends for Homes in 2024

As we step into the new year, the world of interior design is buzzing with innovative trends that promise to transform homes into stylish sanctuaries.

Local Events

Celebrating Elegance: A Glance at the Rich History of the Arabian Horse Show in Scottsdale

Since 1955, the Annual Scottsdale Arabian Horse Show has been setting the pace in the Arabian horse world

Local Events

Excitement Swings into Action: The WM Phoenix Open 2024 Tees Off!

Known as "The Greatest Show on Grass," The WM Phoenix Open held at TPC Scottsdale truly lives up to its reputation.

Real Estate Forecast

Why You May Want To Consider a Newly Built Home

Are you putting off your plans to sell because you’re worried you won’t be able to find a home you like when you move?

Local Events

Get Ready for the Greatest Car Show on Grass at Concours in the Hills.

Every year, Concours in the Hills gets bigger. Today, Fountain Hills' whole lakeside park is filled.

Work With Us

You want a personal real estate advisor with a commitment to excellence and innovative strategies.