Just last month, home sale prices reached record levels in the U.S. while sales themselves slowed. So, as we have officially crossed the half way point for the year, where is the real estate market headed?
Keeping Current Matters has compiled the forecasts from major industry resources and found that across the board, everyone anticipates that prices will still continue to grow through the remainder of 2024. Albeit, at more normal pace than the past handful of months.
“We all expected that at this point in the year, we would see stronger home sales activity, and interest rates [would be] down,” Jessica Lautz, Deputy Chief Economist at the National Association of Realtors told Yahoo Finance. “[Rates] moved back up into the 7 percent range, and that does put a damper on home sales activity, and it changes who can purchase a home.”
![20240624 Mortgage Rate Projections 1 Original](https://californialistings.com/norcal/wp-content/uploads/2024/06/20240624-Mortgage-Rate-Projections-1-original.png)
And while Fannie Mae, the Mortgage Bankers Association and NAR all expect mortgage rates to fall slightly by year’s end, it’s really going to take an influx on inventory to help moderate the pricing surge.
“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,” Lautz said.
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