Experts Change Forecasts for Home Prices

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Source: KCM
7 of the leading home price forecasters have upwardly revised their predictions for this year. On average, they now expect home prices to rise by 3.27%. Here’s each firm’s prediction for home price growth this year:
  • Goldman Sachs: +5.0%
  • Mortgage Bankers Association: +4.1%
  • Zillow: +3.5%
  • Fannie Mae: +3.2%
  • Freddie Mac: +2.8%
  • Home Price Expectations Survey: +2.4%
  • National Association of Realtors: +1.9%

Our take
This is an especially important report, and definitely one you should share with your clients. If they want to buy, they should do it now before homes become even more expensive. But we know there’s more to this story. Mortgage rates may be in the 7s now, but we have every reason to believe that they’ll drop this year and fall even further in 2025. And when you consider all the options homebuilders are offering–concessions, rate buydowns, below market rates–we believe buying now and refinancing later makes a ton of sense.

 

James and David, The Blueprint

March 5, 2024