by Jim Lee, Guest Contributor
The new year is right around the corner, and some families may be wondering if 2024 will be the right time to buy or sell a home. To make the most informed decision possible, it is important to know what the experts have to say about what’s ahead for the housing market and home prices.
Spoiler alert: the projections may be better than you think.
Here is our forecast for real estate trends in Portsmouth, NH for 2024.
Ongoing Home Price Appreciation is in the cards
Take a look at the latest home price forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR):
As you can see in the orange bars on the left, on average, experts forecast prices will end this year up about 2.8% overall, and increase by another 1.5% by the end of 2024. And we agree with the experts.
We believe price appreciation will continue in 2024, albeit at a slower pace. That’s big news, considering so many people thought prices would crash this year.
The truth is prices didn’t come tumbling down in 2023. The reason: a supply/demand imbalance, there simply were fewer homes available for sale compared to the number of families that needed to buy one.
That inventory crunch is still very real.
Home price appreciation is cumulative
Even though the expected rise in 2024 isn’t as big as in 2023, it’s important to understand home price appreciation is cumulative. In simpler terms, this means if the experts are right, according to the national average, after your Portsmouth home’s value goes up by 2.8% this year, it should go up by another 1.5% next year. That ongoing price growth is a big part of why owning a home in Portsmouth and the New Hampshire Seacoast can be a smart decision in the long run.
Expert Projections Show Sales Should Increase Slightly Next Year
While 2023 hasn’t seen a lot of home sales relative to more normal years in the housing market, experts are forecasting a bit more activity next year. Here’s what those same three organizations project for the rest of this year, and in 2024 (see graph below):
What do these forecasts tell you?
While expectations are for just a slight uptick in total sales, improved activity next year is a good thing for the housing market in Portsmouth, and for buyers and sellers. As people continue to move, that opens up options for hopeful buyers who are looking for a home.
What do these forecasts show?
The Portsmouth housing market is expected to be more active in 2024. Why? There will always be people who need to move. People will get new jobs, have children, get married or divorced – these and other major life changes lead people to move regardless of housing market conditions. That will remain true next year, and for years to come. And if mortgage rates come down, we’ll see even more activity in the New Hampshire Seacoast housing market.
The bottom line
If you’re thinking about buying or selling, it is important to know what the experts are forecasting for the future of the housing market. When you’re in the know about what’s ahead, you can make the most informed decision possible.
