NAR says the housing market will get off to a “good start” in 2024.
The National Association of Realtors reported this morning that pending home sales were strong in December.
The Pending Home Sales Index (PHSI) rose 8.3% to 77.3 in December. Year-on-year, PHSI increased by his 1.3%. An index reading of 100 corresponds to the level of contract activity in 2001.
“The housing market is off to a strong start this year as consumers benefit from lower mortgage rates and stable home prices,” said NAR Chief Economist Lawrence Yun. “Increased employment and rising incomes will further increase housing affordability, but increased supply is essential to meet all potential demand.”
Quarterly earnings forecast
NAR also announced Economic outlook as of January 2024sales of existing homes are expected to increase by 13% in 2024 (compared to 2023) to 4.62 million units, and in 2025 (compared to 2024) to reach 5.35 million units, an increase of 15.8%.
The annual median home price is expected to rise 1.4% to $395,100 in 2024 and 2.6% to $405,200 in 2025.
“Home sales are expected to increase significantly over the next two years as the market steadily returns to normal sales activity,” Yun said.
NAR expects the Fed to cut interest rates four times. 30-year fixed mortgage rates are also expected to remain in the 6% to 7% range for most of this year.
