Get ready for some good news if you own a house or plan to sell one! Experts are saying that in 2024, the prices of homes are likely to go up.
In the world of buying and selling homes, it looks like we are in for a sunny forecast. Several real estate experts, like Freddie Mac, Zillow, and the National Association of Realtors, are looking ahead to 2024, and they see something promising on the horizon: higher home prices.
Not Enough Houses
One big reason behind this hopeful prediction is the ongoing struggle between how many houses are available and how many people want to buy them. In simple terms, they are not building enough homes to meet the demand. Lawrence Yun, who is the Chief Economist at the National Association of Realtors (NAR), says this is pushing home prices up. The NAR predicts that in 2024, we might see home prices go up by about 2.6%.
Even though there have been more houses built recently, the United States is still missing around 3.8 million homes for sale or rent, according to Freddie Mac.
The journey to 2024 has had some bumps along the way. In 2022, the housing market had a bit of a shock when the rates for 30-year fixed mortgages nearly doubled. This made it hard for many people to buy homes. As a result, the housing market cooled down for a short time, and the prices of homes went down by 2.5% from July 2022 to January 2023, as per the Case-Shiller National Home Price Index.
But this dip in prices did not stick around for long. The prices have gone up again recently. By July, the median price of a sold home was $406,700, which is 1.9% higher than the year before. Even though mortgage rates are still quite high, at around 7.28% for 30-year fixed-rate mortgages, the demand for homes is strong. The National Association of Realtors thinks that because inflation is slowing down, mortgage rates will likely drop to around 6% in 2024.
Not everyone agrees about what’s going to happen in the 2024 housing market. For example, Zillow thinks that home values will shoot up by 6.5% from July 2023 to July 2024, even though some people might still find it hard to afford homes. Freddie Mac is also pretty hopeful. They predict that home prices will go up by 0.8% between August 2023 and August 2024, and then another 0.9% over the next 12 months. One big reason for this price increase is that lots of young people who are buying their first homes (Millennials) are entering the prime time for home-buying, according to Freddie Mac.
These predictions sound great if you are selling a home. But if you are a buyer, it might make you worry about whether you can afford to buy a home.
It’s also important to know that not all experts see things the same way. Some experts, like Moody’s Analytics and Morgan Stanley, think that home prices might go down a little bit in 2024. They say it is because houses are becoming more affordable and more houses are being built.
In the end, as we get closer to 2024, it’s smart to keep an eye on what is happening in the housing market. The situation can change, and it’s important to stay informed about the ever-shifting world of home prices and real estate trends.
Homes in PALM DESERT area
Palm Desert offers homes in various architectural styles, custom builds, and even raw land to build your one-of-a-kind dream home. If you want to know more about what’s available to buy in Palm Desert, check out these luxury listings currently on the market with virtual showings.
Homes for sale around the Palm Desert Area