Home Prices Set to Surge Despite Overvaluation: Fitch's Forecast Fitch Ratings anticipates a surge in home prices following a predicted Federal Reserve interest rate cut in 2024. Despite the central bank’s expected reduction of 75 basis points, the housing market, with 88% of metro areas overvalued, might offer limited relief. Home prices are projected to increase by 0%-3% in 2024 and by an additional 2%-4% in 2025. This rise could further strain affordability, especially for first-time and entry-level buyers, thereby potentially dampening demand. The overvaluation of homes has also intensified, with a 9.4% overvaluation in the second quarter of this year, up from 7.8% at the end of 2022. However, this view isn’t universal; for example, Realtor.com predicts a decrease in home prices by 1.7% in 2024, citing lower mortgage rates and decreased buyer urgency. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Economist Predicts U.S. Recession, Calls for Immediate 'Debt Detox' READ MORE Gold Price Predictions Skyrocket: Wall Street Banks See Record Highs READ MORE Gold Edges Higher as Markets Price in 93% Chance of September Fed Rate Cut READ MORE Starbucks, McDonald's Feel the Pinch as Diners Tighten Belts READ MORE Citi Maintains $3,000 Gold Price Target READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment