Economists predict house prices will plummet by 5.7 percent in 2024

Home prices will plummet nearly 6 percent over the next year, another blow to homeowners.

The Office for Budgetary Responsibility said a price decline expected this year would steepen from 1.1 percent in 2024 to a maximum of 5.7 percent.

With interest rates expected not to drop significantly below 4 percent for some time as economists try to lower inflation, this will increase pressure on mortgage holders looking to refinance over the next 12 to 24 months.

The OBR said it now expects prices to fall 10 percent from their peak in the fourth quarter of last year, versus the 9 percent forecast in November.

Home sales are also expected to fall 20 percent as families choose to stay and wait for prices to rise.

The Liberal Democrats called for a Mortgage Protection Fund “to protect families and pensioners from the government’s rising rates”.

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Lib Dem Leveling Up, Housing and Communities spokeswoman Helen Morgan said:

Lib Dem Leveling Up, Housing and Communities spokeswoman Helen Morgan said:

Lib Dem Leveling Up, Housing and Communities spokeswoman Helen Morgan said: “For millions of families and retirees, this budget is Jeremy Hunt’s house of horrors.”

Leveling Up, Housing and Communities spokeswoman Helen Morgan said: “For millions of families and retirees, this budget is Jeremy Hunt’s house of horrors.

“People are seeing their home prices falling, but the Chancellor’s support is nowhere to be seen.”

In today’s analysis, the OBR said: “Our key forecast is for house prices to fall 10 percent from their peak in the fourth quarter of 2022, a fall of 1 percentage point more than our November forecast.

“Real estate transactions are expected to decline 20 percent from their peak in the same quarter.

“Leading indicators from Halifax and Nationwide suggest that house prices have already fallen 3 to 6 percent between their mid-2022 peak and February 2023.

“Low consumer confidence, pressure on real incomes and expectations of future mortgage rate hikes are expected to contribute to a continued decline in home prices and reduced housing market activity.”

Source: | This article originally belongs to Dailymail.co.uk

https://www.soundhealthandlastingwealth.com/celebrity/economic-forecasters-predict-house-prices-will-plummet-by-5-7-per-cent-in-2024/ Economists predict house prices will plummet by 5.7 percent in 2024

Brian Ashcraft

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