Spring Market Awakening: Zillow Upgrades 2024 Real Estate Forecast!

Author

Michael Cassano
February 27, 2024

Hello everyone! Spring has sprung, folks! It looks like this unexpectedly warm weather is sticking with us, which is fantastic news for the real estate market. With the nicer conditions, it's becoming much easier for prospective buyers to venture out and explore available properties.

Rates ended FLAT compared to last week, and volatility was LOW. Rates are in the low 7’s for most loan types without paying discount points. Paying discount points can get you in the high 6’s.

Spring Forward: Zillow Ups 2024 Home Price Growth Expectations

In a recent update that has caught the attention of homeowners and investors alike, Zillow has revised its forecast for U.S. home prices, signaling a more optimistic outlook than previously anticipated. For the period from January 2024 to January 2025, Zillow now expects home prices to rise by an impressive 4.2%, an adjustment from their earlier prediction of a 3.5% increase.

Here is the scoop from Zillow’s senior economist, Orphe Divounguy: While housing affordability is still a challenge, the end of last year saw a dip in mortgage rates, bringing buyers and sellers back into the game. Listings are up by 6% and home sales are up 3% compared to last year, signaling a lively spring ahead.

Where Home Prices are Expected to Rise Most in 2024

Here in Vegas, the Las Vegas Valley is on track to become the 12th "hottest" real estate market in 2024, based on Zillow's assessment of 50 major metropolitan areas in the U.S. This projection takes into account factors like home value appreciation and time on market. Instead of the previously anticipated 1 percent drop, the market is now expected to see a 3.9% increase in home prices by January 2025. Additionally, a boost in sales is forecasted, bouncing back from what was noted as the most challenging year since 2008, as per Zillow's analysis.

Key Events this Week

Last week didn't offer much excitement, except for Nvidia's impressive performance, surpassing market forecasts. This week, we're setting our sights on a couple of mortgage-related events, keeping a close eye on them. It's important to note that the PCE (Personal Consumption Expenditures) is the Federal Reserve's favorite gauge for inflation, offering a wider range of data compared to the CPI (Consumer Price Index), which generally reflects the spending habits of urban dwellers.

  • Tuesday - CB Consumer Confidence data

  • Wednesday - US Q4 2023 GDP data

  • Thursday - January PCE Inflation data

  • ~10% of S&P 500 companies report earnings

  • 12 Fed speaker events this week.

24 of the Best Listing Ideas for 2024

As we navigate this market, it is crucial to focus on strategies that not only generate leads but also foster trust and credibility.  This was an original Inman article that I made into a printable pdf for you.