Real Estate Blog by Windy Crutchfield, REALTOR®

Slow and Steady Wins The Race: Housing Market Forecast 2024

Looking back on last year’s forecast, I was optimistic that conditions would improve for buyers. They have…but only after they worsened due to government actions. Curbing inflation amid a spendthrift culture has been a slooooow balancing act that we expect will continue through 2024. The questions that I hear regularly are whether prices or rates are coming down, and inherent in those questions is if people should wait to make a move. Defining what is most important to your lifestyle is critical when making big financial decisions. Having these yearly forecasts, where I review and evaluate the top economists’ projections for the year ahead and compare them to our local market, helps people prepare for their right opportunity and achieve their important goals.

There are no indications that home prices will decline, since we still have strong demand and declining inventory, but there won’t be double-digit appreciation as has been the case locally. In 2023, appreciation was 5.9%, whereas the yearly national average is 2-3%. This year we have seen slower sales in homes that aren’t in premium condition, including longer time on the market and price reductions. We have also been able to secure more home inspections than we were in 2022. This is good news for buyers and also means that sellers need to consider condition more than they have through the pandemic. Nationally, 6.5% of listings have sold less than asking price in 2023. However the inverse case is that 93.5% of homes sold at list price or higher, and 32% of those sold ABOVE list price. Most housing experts predict home price appreciation to reach 2.4% in 2024 and 2.7% in 2025. So prices will continue to rise but not as dramatically. Locally, Norfolk, Virginia Beach, and Suffolk have seen stronger appreciation, which means buying opportunities are going to be better in Portsmouth and Chesapeake. Throughout the country, we will see millennials making geographical...