Housing Market Forecast: What’s Ahead for the 2nd Half of 2024
Housing Market Forecast: What’s Ahead for the 2nd Half of 2024 | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
As we move into the second half of 2024, here's what experts predict for home prices, mortgage rates, and home sales, with a special focus on the dynamic markets of Los Angeles and Beverly Hills, CA.
Home Prices Are Expected to Climb Moderately
Home prices are forecasted to rise at a more normal pace, as indicated by the latest predictions from seven of the most trusted sources in the industry. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), notes:
"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 higher compared to recent years, it's still low overall. This shortage will continue to put upward pressure on prices. In high-demand areas like Los Angeles and Beverly Hills, where luxury properties and desirable locations are prime, this trend is especially significant. The moderate climb in prices means buyers can enter the market without facing the extreme price surges seen during the pandemic, and they can feel confident that their investment will appreciate over time.
Mortgage Rates Are Forecast to Come Down Slightly
Fannie Mae, the Mortgage Bankers Association (MBA), and NAR all predict a slight decrease in mortgage rates. This is great news for both buyers and sellers. For buyers, even a small drop in mortgage rates can significantly lower monthly payments, making high-value homes in areas like Beverly Hills more accessible. For sellers, lower rates will attract more buyers into the market, potentially leading to quicker sales at higher prices.
In luxury markets like Los Angeles and Beverly Hills, where property values are substantial, the impact of lower mortgage rates can be even more pronounced. Sellers who have been hesitant to list their homes due to high mortgage rates might find this the perfect opportunity to enter the market.
Home Sales Are Projected to Hold Steady
The number of home sales in 2024 is expected to be similar to last year, with a slight increase possible. Predictions from Fannie Mae, MBA, and NAR suggest around 5 million home sales this year, up from the 4.8 million homes sold last year. Lawrence Yun, Chief Economist at NAR, explains:
"Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales."
In bustling markets like Los Angeles and Beverly Hills, this stability means more opportunities for both buyers and sellers. With job growth and slightly lower mortgage rates, more homes are expected to be available, meeting the high demand from buyers seeking luxury properties and prime locations. This steady sales environment provides an excellent opportunity for those looking to buy or sell in these prestigious areas.
Bottom Line
Navigating the real estate market in Los Angeles and Beverly Hills requires expert guidance, especially with the nuanced changes expected in the latter half of 2024. Whether you're considering buying a luxury home in Beverly Hills or selling a prime property in Los Angeles, staying informed and working with knowledgeable real estate professionals is crucial.
If you have any questions or need assistance with your real estate needs, don't hesitate to reach out. Let's work together to make your real estate goals a reality.
Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value
