The short answer is “no”. The home prices will be keep rising in 2024 but in a slower pace than previous years due to lack of inventory. The inventory is the driving factor for today’s market. Therefore, the homes in great condition sell very quickly with overasking prices because there aren’t that many options out there. This puts many buyers in bidding wars and they end up paying way more than they are supposed to.
You might see some news claiming national and local median home prices are declining. This might be true for some of the markets, but there is catch. The way the median home price is calculated for a specific area depends on the medium value of the homes sold in that particular area. For example: lets say we have 5 homes sold for the prices of 70K, 80K, 90K, 120K and 500K. We drop two higher and two lower prices for the calculation and median home price for this instance would be 90K; however, that does not mean 500k home is sold below its market value or it lost any value. More and more less expensive homes are selling at the moment because of the high interest rates and this situation makes the median home prices decline.
Bottomline, there isn’t a big crash or anything similar to that on the horizon for 2024. The best way to read the market is looking at the data to see what has been sold for what price and when. This is where I come in. Don’t hesitate to reach out for the specific market report so we can evaluate the best scenario for you either if it’s selling or buying.
