If you’re considering buying a home, you want to know that you are making a good decision. To prepare to purchase, it’s essential to consider home price projections for the coming years and how that could impact your investment.
Home prices aren’t falling as dramatically as many expected this year. However, as the year goes on, some markets may increase 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 following years.
Home Price Appreciation in the Years Ahead
Pulsenomics polled over 100 economists, investment strategists, and housing market analysts 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, growing 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, remember what a robust wealth-building tool homeownership is long-term.
While we may see slight depreciation this year, home prices are expected to grow over the next five years, according to experts. 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 net worth) are projected to grow. Partner with Martino Realty to begin the homebuying process today.