As we approach the dawn of a new year, you might be pondering whether 2024 holds promise for your plans of buying or selling a home in Knoxville, TN. It's a wise move to seek insights from experts to make an informed decision. Buckle up, because the forecasts for the housing market ahead are quite promising. Here's what you need to know.

Forecasts Anticipate Continued Home Price Growth Let's delve into the latest home price projections from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) and see what they have to say about the future:

In the orange bars on the left, experts predict a year-end increase of approximately 2.8% in home prices overall for this year. They further anticipate another 1.5% increase in prices by the end of 2024. These forecasts are significant, especially considering the widespread belief that prices might plummet this year. The reality is, 2023 did not witness a massive decline in prices due to the ongoing scarcity of available homes for sale in comparison to the high demand from buyers. This persistent imbalance in supply and demand continues to propel prices upward as we step into the upcoming year.

Looking ahead, experts foresee a continuation of rising home prices in 2024, although the rate of increase is projected to be slightly lower than that of 2023. However, it's crucial to comprehend that home price appreciation is cumulative. Put simply, if the experts' predictions hold true, after experiencing a 2.8% uptick in your home's value this year as per the national average, you can anticipate a further 1.5% increase next year. This sustained growth in prices underscores the long-term value and benefits of homeownership.

Projections Indicate a Modest Rise in Sales Although 2023 has seen a rather subdued volume of home sales compared to typical market years, experts anticipate a slight uptick in activity for the upcoming year. Here's a snapshot of the projections by the same three organizations for the remainder of this year and 2024:

While the forecasts suggest only a marginal increase in total sales, this uptick signals a positive trend for both the housing market and prospective buyers and sellers in Knoxville, TN. Increased movement within the market opens up avenues for eager buyers seeking their ideal homes.

In summary, the projections for 2024 indicate a more dynamic housing market. Various life changes, such as job transitions, family expansions, marriages, or divorces, consistently prompt people to move, irrespective of prevailing market conditions. This trend is expected to persist in the coming year and beyond. Moreover, if mortgage rates experience a decline, we may witness even greater activity within the housing market.

Bottom Line When considering your next move in Knoxville's housing market, it's invaluable to be informed about expert forecasts. Understanding the market landscape empowers you to make the best decisions. Let's discuss these latest projections together and devise a tailored plan for your next housing venture in Knoxville, TN.