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.

If your listing has expired without a successful sale, it's common to experience a blend of frustration and disappointment. Naturally, you may be contemplating what might have gone awry. Consider the following three questions as you navigate the next steps. Did You Restrict Access to Your Property? Did You Enhance Your Property's Appeal? Did You Price Your Property Competitively?

If you want to buy a home, it’s important to know how mortgage rates impact what you can afford and how much you’ll pay each month. Fortunately, rates for 30-year fixed mortgages have come down significantly since the end of October and are currently under 7%.

The challenges faced in 2023, such as higher mortgage rates and a shortage of available homes, made it a complex landscape for both buyers and sellers. However, positive shifts are on the horizon.

Encouragingly, many experts believe that we have entered a positive phase. Mortgage rates, which recently showed a decline, offer hope for buyers dealing with affordability issues…

When it comes to the current state of the housing market, there is considerable confusion. Conversations with friends, news reports, and social media posts often present conflicting information. If you're contemplating a move, this can leave you with numerous lingering questions, and that's where a reliable local real estate agent becomes invaluable.

Here, we address the top three questions people have about today's housing market, providing data to offer informed answers.

If concerns about an imminent recession have been on your mind, you're not alone. There has been widespread discussion about the possibility of a recession in the past couple of years, with many expressing worries that it could lead to a significant increase in the unemployment rate, potentially causing a surge in foreclosures reminiscent of events 15 years ago.However, the most recent Economic Forecasting Survey by the Wall Street Journal (WSJ) brings a shift in perspective. For the first time in over a year, fewer than half (48%) of economists anticipate a recession within the next year

If you’ve ever dreamed of buying your own place, or selling your current house to upgrade, you’re no stranger to the rollercoaster of emotions changing home prices can stir up. It’s a tale of financial goals, doubts, and a dash of anxiety that many have been through.

But if you put off moving because you’re worried home prices might drop, make no mistake, they’re not going down. In fact, it’s just the opposite.

If you’ve been following the news recently, you might have seen articles about an increase in foreclosures and bankruptcies. That could be making you feel uneasy, especially if you’re thinking about buying or selling a house. But the truth is, even though the numbers are going up, the data shows the housing market isn’t headed for a crisis.

If you’re thinking of making a move, one of the biggest questions you have right now is probably: what’s happening with home prices? Despite what you may be hearing in the news, nationally, home prices aren’t falling. It’s just that price growth is beginning to normalize. Here’s the context you need to really understand that trend.

You might remember the housing crash in 2008, even if you didn’t own a home at the time. If you’re worried there’s going to be a repeat of what happened back then, there’s good news – the housing market now is different from 2008.

If you’re hoping to buy a home this year, you’re probably paying close attention to mortgage rates. Since mortgage rates impact what you can afford when you take out a home loan – and affordability is a challenge today – it’s a good time to look at the big picture of where mortgage rates have been historically compared to where they are now. Beyond that, it’s important to understand their relationship with inflation for insights into where mortgage rates might go in the near future.

If you’re planning to buy a home, one thing to consider is what experts project home prices will do in the future and how that might affect your investment. While you may have seen negative news over the past year about home prices, they’re doing far better than expected and are rising across the country. And data shows, experts forecast home prices will keep appreciating.

One question that’s top of mind if you’re thinking about making a move today is: Why is it so hard to find a house to buy? And while it may be tempting to wait it out until you have more options, that’s probably not the best strategy. Here’s why.