As we start a new year, we have a lot to look forward to. We have inflation trending lower via the PCE, CPI, and PPI indexes, a Federal Reserve that is now speaking a more “dovish” or more accommodative language, super strong levels of home purchasing demand, and mortgage interest rates also trending lower.
Speaking of strong demand and lower rates and some more to look forward to for many… Fannie Mae and Pulsenomics released their Home Price Expectations Survey. This survey encompasses the minds of 100 top housing market experts in the country. The results of their Q4 Survey showed that they are forecasting home prices will continue to rise in 2024 and on average by 2.4%. Also, when looking at their longer-term, the most pessimistic quartile within the report believes homes will appreciate by 10% over the next five years, while the most optimistic quartile believes they will rise by 40%. Many are pessimistic, while many are much more optimistic and if you average the forecasts, you get a 25% appreciation over the next five years. However, this survey has been known to undershoot appreciation forecasts. For example, the last survey done one quarter ago showed full-year 2023 appreciation at 3.3%, which was revised to 5.9% in this latest report. Also, almost 50% believe we will have a recession by the first half of next year, which would garner lower mortgage rates and likely cause appreciation to excel even higher.
Exiting 2023 and entering 2024 will begin a new year with a lot to look forward to as according to the aforementioned economic reports and industry experts, the potential for building wealth with continued home appreciation and lower mortgage interest rates appears very likely.
Source : https://pulsenomics.com/surveys/
By: Jon Iacono