Today's headlines about home prices can be confusing and make it hard to grasp the current market trends. Some reports suggest that home prices might be due for a correction, but what does that really mean? It’s useful to start by understanding what a correction entails.

In today’s housing market, a correction doesn’t imply a dramatic fall in home prices. Instead, it means that after a period of rapid increases, prices are starting to stabilize and grow at a more moderate rate. While local markets can vary, a significant national decline is not on the horizon.

If you’re considering buying or selling a home, you’re likely keeping a close eye on mortgage rates and wondering what the future holds.

One key factor influencing mortgage rates is the Federal Funds Rate, which determines the cost for banks to borrow money from one another. While the Federal Reserve (the Fed) doesn’t set mortgage rates directly, it does control the Federal Funds Rate.

This connection is why many are eagerly anticipating any changes the Fed might make to this rate. A decrease in the Federal Funds Rate typically puts downward pressure on mortgage rates.

Even if you didn’t own a home back then, the memory of the 2008 housing crisis likely lingers. That downturn profoundly affected countless lives, leading many to fear a repeat. However, there's good reason to be reassured: today's housing market is fundamentally different. According to Business Insider:

“Despite widespread concern, the majority of housing market economists do not foresee a crash in 2024 or beyond.”

Experts are confident for several reasons. Unlike in 2008, when an oversupply of homes contributed to the crash, today's market faces an undersupply issue, despite recent inventory growth. The housing supply primarily comes from three sources:

Homeowners selling their properties (existing homes)

New home construction

Distressed properties (foreclosures or short sales)

In recent months, experts have adjusted their predictions for 2024 home prices based on current data and market trends, expressing even stronger confidence in price increases rather than declines.

Let's delve into how experts' perspectives have evolved and the driving forces behind these changes.

Comparing 2024 Home Price Forecasts: Then vs. Now Examining the chart below reveals the initial and revised projections of seven expert organizations regarding home prices in 2024. Initially, experts anticipated marginal increases in home prices this year. However, a closer look at the updated forecasts indicates a significant shift, with experts now foreseeing more substantial price hikes than previously anticipated.

Thinking about purchasing your first home can be overwhelming, especially when considering the various costs involved, notably the down payment. Many believe that saving 20% of the home's price is a prerequisite, but this isn't necessarily accurate.

Considering a move to Houston, Texas, but unsure which suburb suits you best? This video is your comprehensive guide to the top 5 suburbs on the North side of Houston, and there's even a bonus sixth suburb you won't want to miss! Whether you're curious about home prices, local attractions, or real estate insights, we've got you covered for each of these fantastic Houston Texas suburbs.