As we progress through 2024, the real estate market continues to demonstrate dynamic trends that are essential for both buyers and sellers to understand. Key factors such as home prices, mortgage rates, and home sales projections are shaping the landscape and influencing market behavior. Whether you’re looking to buy or sell, staying informed about these developments can help you make the most strategic decisions. Here’s a closer look at what you can expect for the rest of the year, starting with home price forecasts, mortgage rate trends, and anticipated home sales.
Home Prices Are Expected To Climb Moderately
Home prices are forecasted to rise at a more normal pace. According to Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), "One thing that seems to be pretty solid is that home prices are going to continue to go up, and the reason is that we don’t have housing inventory." While inventory is up compared to the last couple of years, it’s still low overall. And because there still aren’t enough homes to go around, that’ll keep upward pressure on prices.
For buyers, this means prices aren’t expected to drop. They’ll continue climbing – just at a slower pace. So, getting into the market sooner rather than later could still save you money in the long run. Plus, you can feel confident your home will grow in value after you buy it.
Mortgage Rates Are Forecast To Come Down Slightly
One of the best pieces of news for both buyers and sellers is that mortgage rates are expected to come down a bit, according to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR. Even a small drop in mortgage rates can make a big difference in your monthly payments as a buyer. For sellers, lower rates will bring more buyers back into the market, which can help you sell faster and potentially at a higher price.
Home Sales Are Projected To Hold Steady
For 2024, the number of home sales will be about the same as last year and may even rise slightly. The average of the forecasts from Fannie Mae, MBA, and NAR is about 5 million sales in 2024 – a small increase from 2023. According to Lawrence Yun, Chief Economist at NAR, “job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.” With more inventory available and mortgage rates expected to go down, a few more homes are expected to be sold this year compared to last year.
As we move through 2024, the real estate markets in Arlington, Medford, and Woburn are poised for continued growth. For sellers, the current trends of rising prices and decreased days on market suggest a prime time to list properties. For buyers, the competitive market conditions emphasize the need to be prepared and act quickly. Whether you’re buying or selling, Steve McKenna & The Home Advantage Team is here to provide expert guidance and ensure you achieve the best possible outcome. Contact us today to discuss your real estate needs and take advantage of the thriving market. Let's work together to make sure you’re one of the many who will successfully navigate this dynamic market.
