Experts have recently revised their 2024 home price forecasts, expressing increased confidence in a rise rather than a fall. Initially expecting modest growth, these experts have updated their projections, foreseeing more substantial increases. The primary driving factors behind this upward pressure on home prices include a persistently low housing inventory and, to a lesser extent, changes in mortgage rates.
Late last year, predictions suggested only slight price increases for 2024, with higher mortgage rates and moderate buyer demand. However, the situation has shifted. Mortgage rates have decreased since October, leading to a surge in buyer demand amid continued low housing inventory. Looking ahead, experts emphasize the importance of monitoring mortgage rates as they are expected to trend down, potentially driving further demand and subsequent home price increases.
In essence, the current dynamic is centered around the principles of supply and demand. Limited supply coupled with increasing demand is anticipated to push home prices even higher. Initially projecting modest growth, experts now advocate connecting with local real estate agents to understand the evolving price expectations in specific areas.