The new year is upon us, and if you’re wondering whether 2024 will be the right time to buy or sell a home, experts already have some interesting projections. Be warned: the predictions may be better than you think.
Experts forecast continued home price appreciation
On average, prices are expected to rise by 2.8% by the end of this year and increase by a further 1.5% by the end of 2024. This is great news! Most thought that prices would fall in 2023, but in reality they remained stable due to the lack of inventory in the market, which continued to push prices upward.
This mismatch between supply and demand remains very real and continues to influence property prices. As we move into the new year, this trend will continue to put pressure on prices.
Looking ahead, experts project that home prices will continue to rise, although not as much as this year. Price appreciation is cumulative. In simple terms, after your property value goes up 2.8% this year, it should go up another 1.5% next year. This steady increase makes homeownership an excellent long-term decision.
Projections indicate that sales will increase by 2024
Although home sales in 2023 were lower than in previous years, more activity is expected in the market next year. Here are the expectations of three major agencies:
A rebound in property sales is projected. Real estate activity should improve, which is positive for both buyers and sellers. With more people moving in, buyers will find more options available. And if mortgage rates come down, this will also boost activity in the market.
The housing market will be more active in 2024, as there will always be people who need to move due to major life changes, such as a new job, marriage or divorce. If mortgage rates decline, this could generate even more transactions in the market.
NAR Chief Economist Lawrence Yun predicts that used home sales will increase 13.5% next year. In addition, mortgage interest rates will be between 6% and 7% by spring 2024.
Builders are also expected to continue to increase sales of new construction homes, with a 5% increase so far this year. In a housing-shortage environment, builders are really benefiting from this situation.
Yun also forecasts that U.S. GDP will grow by 1.5%, avoiding the recession that many anticipated. New job creation will be slower, with 1.7 million new jobs by 2024, compared to 2.7 million in 2023.
In addition, 1.48 million housing starts are projected, which includes 1.04 million single-family and 440,000 multifamily housing starts.
2024 starts with great momentum after a very positive year. Signs of increased activity favor real estate businesses. This is a perfect time to continue or start investing in US real estate.
Your profits are waiting for you.
At Your Real Investment, we are proud of the results obtained for our clients. We will attend you with professionalism and renewed energy, ready to advise you.
Happy 2024, full of peace of mind and high returns for your capital.
