Ready to Make Your Move?
From January 2023 to January 2024, the median price of a home sold in our area went from $539,950 to $569,900, a 5.5% increase.
What’s in store for 2024? Some experts have recently revised their predictions.
Attempting to predict the future is like solving a puzzle with missing pieces and constantly changing shapes. It’s not impossible, but it’s a challenge.
What do experts say? It may be helpful to know what economists think.
The National Association of REALTORS predicts that the median price of a home sold in the United States will rise 1.4% during 2024. NAR estimates that interest rates will average 6.3% this year and be 6.5% at the end of the year.
Economists at Realtor.com predict interest rates will average 6.8% this year and be 6.5% at the end of the year. They think the median price of homes in the U.S. will decrease by 1.7% this year.
The Mortgage Banker’s Association is bullish on this year’s real estate market and thinks we’ll end the year with interest rates at 6.1%. They predict that at the end of this year, prices will have risen 4.1% year-over-year.
Pulsenomics surveyed one hundred economists about the future of home prices. Their predictions for 2024 ranged from a decrease in prices this year of more than 5% to price increases of almost 20%. The average of all predictions was an increase in prices this year of 8.41%.
Finally, Fannie Mae predicts that prices will rise 3.2% this year and that interest rates will average 5.8% during the last quarter of the year.
There does seem to be some consensus that interest rates should be lower by the end of the year than they are now. Most economists predict that prices will be higher at the end of this year than at the end of last year.
If the median price in our area rises 3.2% from December 2023 to December 2024 – in line with Fannie Mae’s prediction – our median price in December will have jumped from $535,500 to $551,565.