Home prices are on the rise across the country, yet some are still anticipating they might fall. According to a recent survey by Fannie Mae, 24% of people expect home prices to drop in the next 12 months, although this is unwarranted.
Take a look at the latest home price projections from eight different sources (see graph below):
The blue bar on the left shows that, on average, experts anticipate home prices to increase by more than 2% by the end of this year..
Home prices are not expected to drop because there are fewer homes for sale currently. Many are opting to stay in their homes longer because they are happy with their current interest rate while their home equity continues to rise. In addition, mortgage rate decreases will increase buyer demand in an already competitive market. These two factors will keep pushing prices up throughout the year. As Selma Hepp, Chief Economist at CoreLogic, says:
“As mortgage rates fall, demand for homes in early 2024 will be strong and will again increase prices, similar to trends seen in early 2023 . . . Most markets will keep reaching new home price peaks during 2024.”
How Does This Affect You?
When you own a home, you want its value to go up. That appreciation is what creates equity and makes homeownership a smart investment over time.
For buyers, rising home prices also mean waiting will only make it more expensive later.
Key Takeaway
Most financial and real estate experts expect home prices to increase this year. That said, there’s a lot to consider when you’re buying and selling a home and everyone’s situation is different. Contact us to discuss the pros and cons of making a move in your particular situation. Not from Atlanta? No problem. Reach out regardless. We are happy to recommend a local real estate expert to help near you.
