“Experts project a return to a steadier rate of price appreciation in the years that follow.”
If you’re thinking about buying a home, you want to know the decision will be a good one. And for many, that means thinking about what home prices are projected to do in the coming years and how that could impact your investment.
This year, we aren’t seeing home prices fall dramatically. As the year goes on, however, some markets may go up in value while others may lose value. That’s why it’s helpful to keep the long-term view in mind. Experts project a return to a steadier rate of price appreciation in the years that follow.
Home Price Appreciation in the Years Ahead
Over 100 economists, investment strategists, and housing market analysts were polled by Pulsenomics in their latest quarterly Home Price Expectation Survey (HPES). The report indicates what they believe will happen with home prices over the next five years. As the graph below shows, after mild depreciation this year, these experts forecast home prices will return to more normal levels of appreciation through 2027.
The big takeaway is experts aren’t forecasting a drastic fall in home prices nationally, even though some markets will see home price appreciation while others may depreciate. And when they look further out, they see steady price appreciation in the long run. That’s a great example of why homeownership wins over time.
What Does This Mean for You?
Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. Here’s how a typical home’s value could change over the next few years using the expert price appreciation projections from the survey mentioned above (see graph below):
In this example, if you bought a $400,000 home at the beginning of this year and factor in the forecast from the HPES, you could accumulate over $54,000 in household wealth over the next five years. So, if you’re wondering if buying a home is a sound decision, keep in mind what a strong wealth-building tool it is long term.
Bottom Line
According to the experts, while we may see slight depreciation this year, home prices are expected to grow over the next five years. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) are projected to grow. Let’s connect to begin the homebuying process today.
What’s Ahead for Home Prices?
The housing market is shifting, and it’s a confusing place right now. Let’s connect so you have a trusted professional to help you make an informed decisions about what’s happening in our market.
The Emotional and Non-financial Benefits of Homeownership
If you’re looking to put down roots, homeownership can help fuel a sense of connection to the area and those around you.
The Cost of Waiting for Mortgage Rates to Go Down
As mortgage rates rise, they impact your purchasing power by raising the cost of buying a home and limiting how much you can afford.
How To Prep Your House for Sale This Fall
Taking the time upfront to prep your house appropriately and create a solid plan can help bring in the greatest return on your investment.
If You’re Thinking of Selling Your House This Fall, Hire a Pro
A trusted real estate advisor will keep you updated and help you make the best decisions based on current market trends.
The True Strength of Homeowners Today
Home equity allows homeowners to be in control. This is yet another reason we won’t see the housing market crash like we saw in 2008 when many owed more on their homes than they were worth.