No one has a crystal ball, particularly when it comes to this unpredictable real estate market. Although there are a few indicators market watchers look for which point to slight appreciation in housing this year.
While home prices are still going up nationally, some fear prices might actually come down in the coming months. A recent survey from Fannie Mae found that 24% of people think home prices will decline over the next 12 months. Almost one out of four people are concerned about housing prices and wondering whether they should wait to buy. 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
The latest home price forecasts from eight different sources are in the graph below.
Prices aren’t likely to depreciate in 2024 because inventory is still tight and as mortgage rates trend lower strong buyer demand is resurfacing. Those two factors will keep pushing prices up as the year goes on, even if it’s not the same double digit appreciation of recent years.
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 are saying home prices will go up this year, and that’s good news if you’re thinking about buying a home. When you become a homeowner, you benefit when the value of your house to go up. Appreciation is what builds equity and makes homeownership a good investment over time.
Expected home price appreciation over this year means if you’re ready, willing, and able to buy, waiting could cost you more. We expect Colorado’s real estate market to surge come spring and we’re already hearing about multiple offers in some cases. If you purchase now, you may see rates go down after you close, but you’ll also see prices go up. Consider asking the seller for a rate buydown, which could make your first two years’ interest significantly less. The mortgage team at Prosperity Home Mortgage are happy to answer any questions.
If you’re worried home prices will come down, don’t fret too much. Many experts believe they’ll go up this year. Our team of highly experienced brokers at Kentwood Real Estate, selling from Denver to Boulder to Fort Collins, commercial rea estate and property management, are ready to assist.