Mortgage
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.
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.
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.
Stay up to date on the latest real estate trends.
New Listing
3 beds | 2.5 baths | 1,623 sq ft
Mortgage
It’s on track for steady, slow, long-term growth overall
Mortgage
We can walk through your potential equity, your timing, and local market conditions
Mortgage
A built-in escape you can use year after year
Mortgage
Let’s talk with a lender about your options and see if you’re ready to take that next step
Mortgage
Roughly 11,000 homes are selling every day – and yours could be next
Mortgage
Let’s break down what’s really going on
Mortgage
Let’s connect so you have that expertise on your side.
Mortgage
17% of homebuyers purchase a home to share with parents, adult children, or extended family
You’ve got questions and we can’t wait to answer them.