Despite high mortgage rates, property prices will continue to rise in 2024, pricing out hopeful Millennials for yet another year. Between our three sources, experts in the housing market are expecting home prices to increase another 3.4% this year, after 5.5% growth in 2023.

Home price predictions 2024

• Fannie Mae expects 4.8% growth in 2024.
• Mortgage Bankers Association expects 4.3% growth in 2024.
• National Association of Realtors expects 1.5% growth in 2024.

Would-be-homeowners who missed their chance in 2019 are looking for the outsized pandemic price gains to reverse, but they’ve only slowed down, continuing to hit record highs. The March 2024 median of $393,500 is the highest March on record, continuing to outpace wages.

Mortgage rates have settled on an average of 7.12% in May 2024 after soaring to 8% in October 2023, a 23-year record. But a meagre 3.2-month supply of housing inventory is keeping prices afloat.

Investments are looking bountiful for existing homeowners who can rely on recent gains to finance new purchases. NAR’s Yun mentions that while some markets, like Austin, Texas, have seen small price declines, prices will remain firm nationally. With current low inventory levels, builders being cautious about new constructions, and strict lending standards, a repeat of the 2008–2012 housing market crash is unlikely. It remains a seller’s market for now.