From Fortune Magazine:

According to Zillow, home values are forecasted to increase by 3.7% in 2024, due to the decline in mortgage rates and an improved inflation outlook from the Federal Reserve. This has the potential to unlock more buyers as it brings down monthly payments on new mortgages.

Redfin also reports that home prices were up 5.1% and asking prices up 6.5% from October to January. However, they predict a 1% decline in home prices year-over-year for the second and third quarters of 2024.

Zillow assures buyers that the projected 3.7% growth is not unusual and is actually more in line with historic norms of a 3-5% increase, as the housing market sees new inventory entering and mortgage rates declining.

Another factor to consider in the housing market is the increase in inventory, which will help keep prices in line with historic appreciation and temper rapid acceleration.

In both forecasts, mortgage rates play a significant role in the housing market, and will influence home prices. If rates stay low, more homebuyers will enter the market and drive up prices, while if inflation makes a comeback, mortgage rates might increase.



Read more: Zillow just raised its home price forecast, seeing a 3.7% jump in 2024, and it’s all because of ‘external factors’