Will home prices come down in 2024?

On the contrary, this morning, Case-Shiller reported home prices increased by 5.5% in 2023.

“Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years. With trend growth at the national level of 4.7%, a 5.5% return demonstrates solid, steady growth. While we are not experiencing the double-digit gains seen in the previous two years, above-trend growth should be well received considering the rising costs of financing home mortgages.”

Will there be a housing crash and recession?

Goldman Sachs’ “U.S. economic analysts” team revised its multi-year outlook for U.S. home prices, as measured by Case-Shiller.

For all those nervous about an upcoming, violent recession that will “rock” the economy, economists surveyed by the Wall Street Journal are now betting against such an occurrence.

New Goldman Sacs Home Price Appreciation Forecast:

+5.5% in 2024

+4.4% in 2025

+4.9% in 2026

+4.9% in 2027

The appreciation rates are no longer double-digit as they were during the pandemic when low interest rates and scarce inventory drove appreciation to double-digit levels. The appreciation has returned to more typical market levels, indicating a moderate increase.

Is this a good time to sell my home?

Are you contemplating whether it's an excellent time to sell your house? The concise response is affirmative. Examining the present inventory of homes on the market reveals two critical reasons for this.

A report by Calculated Risk indicates a 15.6% increase in the number of homes for sale now compared to last year, signaling an expansion in inventory. However, when we compare this to 2019, considered the last average year for the housing market, the availability of homes has decreased by nearly 40%.

There is a bit more inventory compared to Last Year.

More options to choose from if you want to sell and buy. Are you considering a sale because your current home no longer fits your size requirements or lifestyle needs? The increase in homes for sale over the past year broadens your choices, potentially making it easier to find a home that suits you.

Realtor.com:

“. . . the number of homes for sale and new listing activity continues to improve compared to last year. However the inventory of homes for sale still has a long journey back to pre-pandemic levels.

Limited Competition in Selling Your Home

However, it's essential to view this in context. Despite the current increase in housing inventory, the market hasn't reached the levels observed in a typical year. According to Calculated Risk, the inventory is nearly 40% lower than in 2019, a gap unlikely to close quickly. With the right pricing strategy, your home could attract significant interest from buyers and possibly sell quickly.

From the Federal Housing Finance Agency (FHFA) this morning:

“U.S. house prices rose 6.5 percent between the fourth quarter of 2022 and the fourth quarter of 2023, according to the Federal Housing Finance Agency (FHFA) House Price Index (FHFA HPI). House prices were up 1.5 percent compared to the third quarter of 2023.”

They also reported that home prices increased by 6.6% in 2023

Americans Hold on to the Dream of Homeownership

40% of Hopeful Buyers Would Consider Buying if Rates Hit 6% or below and Millennials and Gen Z Are Even More Bullish. “Given the reality of our current environment, we are seeing an inspiring level of optimism shine through, indicating that not only is the dream alive, it's something that the American people are still working towards, and believe they can achieve.”

Foreclosed Homes In Los Angeles

I have heard from many that I'm holding off on purchasing until the foreclosure market presents opportunities. The indications are not there for that type of market. For those saying foreclosures could wind up like 2009 & 2010… the numbers are not there, and people have so much equity in their homes.

Can you still achieve the American Dream of home ownership today?

According to Realtor.com, Americans Cling to the Homeownership Dream: 40% of Prospective Buyers Eager to Purchase at 6% Interest Rates or Lower, with Millennials and Gen Z Showing Greater Optimism. “Given the reality of our current environment, we are seeing an inspiring level of optimism shine through, indicating that not only is the dream alive, but it's also something that the American people are still working towards and believe they can achieve.”

Dive into a seamless selling experience with our team, offering personalized, complimentary consultations in Los Angeles and beyond. Our expertise in the local market ensures your property gets the spotlight it deserves. Don't just sell; elevate your property's value and appeal with our strategic insights. Contact us now to embark on a successful selling journey tailored just for you.

How Is The Current Real Estate Market?