In a real estate landscape where national home prices are on the rise, a lingering concern persists among some individuals who fear the possibility of a downturn. According to a recent survey conducted by Fannie Mae, a notable 24% of respondents anticipate a decline in home prices over the next 12 months. If you find yourself grappling with this apprehension, you're not alone.
To alleviate these concerns, let's delve into what industry experts predict for the trajectory of home prices throughout the coming year. The consensus among experts is that home prices are unlikely to depreciate in 2024. This optimism stems from the continued scarcity of inventory and the impact of lower mortgage rates, both of which contribute to robust buyer demand. Selma Hepp, Chief Economist at CoreLogic, emphasizes this point, stating, "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."
So, what does this forecast mean for you?
Experts are asserting that home prices are poised to rise this year, and this is particularly good news if you are contemplating the purchase of a home. The desire for your home's value to appreciate is a natural inclination for homeowners, as this appreciation not only builds equity but also solidifies homeownership as a sound investment over time.
Beyond the financial benefits, the projected home price appreciation underscores a crucial point: if you are ready, willing, and able to buy, delaying your decision may result in a higher cost down the line.
In conclusion, if the worry of potential home price decreases is on your mind, there's reassuring news from experts who believe that prices will, in fact, ascend this year. To gain a better understanding of how these trends apply to your specific area, it is advisable to engage in a conversation with a knowledgeable real estate agent. By staying informed and seeking professional guidance, you can navigate the current real estate landscape with confidence and make well-informed decisions about your homeownership journey.
