In our previous post, we discussed expectations about future home prices. Now, experts project a modest yet positive increase in home prices for 2024. Dive deeper into these projections in this post with us!
Even though home prices are rising nationally, some people still worry they might come down. A recent survey from Fannie Mae found that 24% of people think home prices will decline over the next 12 months. That means almost one out of every four people are dealing with that fear, and you might be, too.
To help ease that concern, here’s what experts forecast will happen with prices this year.
Experts Project a Modest Increase
Check out the latest home price forecasts from eight different sources (see graph below):
The blue bar on the left means, on average, experts think home prices will go up over 2% by the end of this year – not down.
Prices aren’t likely to depreciate in 2024 because inventory is still tight, and lower mortgage rates lead to strong buyer demand. Those two factors will keep pushing prices up as the year goes on.
As Selma Hepp, Chief Economist at CoreLogic, explains:
“With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023 . . . Most markets will continue to reach new home price highs over the course of 2024.”
What Does This Mean for You?
Experts say home prices will go up this year, and that’s good news if you’re considering buying a home in Chicago, Illinois. When you become a homeowner, you want the value of your house to go up.
That appreciation builds equity and makes homeownership a good investment over time.
Beyond that, expected home price appreciation also means if you’re ready, willing, and able to buy, waiting means it will cost more later.
Bottom Line
If you’re worried home prices will come down, don’t be. Many experts believe they’ll go up this year. If you have questions or worries about what’s happening with prices in our area, let’s connect with our real estate team in the Chicagoland area and surrounding suburbs!
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