As more and more media headlines create confusion about the housing market and our economy, this question is probably top-of-mind for many people right now.
While we can’t fully forecast the future, you can do your best to provide a well-rounded
opinion based on data, insights, and expert quotes.
The past year saw its fair share of twists and turns as the housing market shifted. When we see changes in housing like this, it can seem impossible to keep up with it, but here is what you can tell anyone who asks this question. It is still a sellers’ market. Why? Because prices are driven by supply and demand, and we still have a low supply of homes on the market. This means continued upward pressure on home prices.
Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR) summed it up best:
“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.”
Plus, according to the Home Price Expectation Survey from Fannie Mae, which includes projections from over one hundred economists, real estate experts, and investment and market strategists, home prices are expected to see small but steady increases every year through 2028.
And while the percent of appreciation may not be as high as it was in recent years, what’s important to focus on is that this survey says we’ll see prices rise, not fall, for at least the next five years with 2024 looking at about a 2.9% increase.
If you were worried home prices are going to fall, this is a big takeaway.
Even though prices vary by local area, experts project they’ll continue to rise across the country for years to come at a pace that’s more normal.
With that in mind, bringing in these national insights as well as what’s happening in your market will help you and your clients understand the full picture.
This is where layering in that local data becomes more important than ever.
So, what does this mean for you and your sellers?
Pricing their house appropriately so they can catch the eyes of serious buyers is important, especially in this mortgage rate environment.
For buyers, help them see that they’ll gain equity every year so they feel confident about moving for-ward with homeownership.
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