While national home prices are on the rise, it's understandable that some individuals still harbor concerns about a potential decline. Recent findings from Fannie Mae reveal that 24% of people anticipate a decrease in home prices over the next 12 months. If you find yourself sharing this concern, you're not alone.


To alleviate these worries, let's explore the insights provided by experts regarding the trajectory of prices this year.


Experts Anticipate a Modest Increase A glance at the latest home price forecasts from eight reputable sources indicates a positive trend (refer to the graph below):


The left-side blue bar signifies that, on average, experts predict a growth of over 2% in home prices by the end of this year – not a decline.


The outlook for 2024 doesn't suggest depreciation due to the ongoing scarcity of inventory and the impact of lower mortgage rates, fostering robust buyer demand. Selma Hepp, Chief Economist at CoreLogic, elaborates:

“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?

In essence, experts affirm that home prices will experience an upward trajectory this year, presenting positive news for potential homebuyers. As a homeowner, witnessing the value of your property increase is a key factor in building equity, making homeownership a sound long-term investment.


Moreover, the projected appreciation in home prices implies that delaying a home purchase may result in higher costs down the road.


Bottom Line If concerns about a potential dip in home prices are on your mind, rest assured – many experts foresee an increase this year. If you have questions or apprehensions about local price trends, let's connect to discuss and address them. Your peace of mind is important to us.