Anticipated Home Price Trends in the Coming 5 Years

If you're contemplating a home purchase, it's crucial to take into account the price of housing market experts regarding future price movements and how this could impact your investment. Despite negative reports on home prices over the past year, they have outperformed expectations and are steadily increasing nationwide. Additionally, data indicates that experts anticipate continued appreciation in home prices.

Experts Project Ongoing Appreciation

Pulsenomics recently surveyed more than 100 economists, investment strategists, and housing market analysts as part of their quarterly Home Price Expectation Survey (HPES). The survey outcomes reveal the predictions of these experts regarding the trajectory of home prices in the upcoming five years. Below are the expert forecasts indicating a consistent annual increase in home prices until 2027 (as depicted in the graph below):

For those who may have been concerned about the possibility of declining home prices due to online narratives, here's the key message to remember: While home prices can differ significantly by local market, experts are forecasting a sustained nationwide increase in prices in the years ahead. These figures signify a return to a more typical pattern of home price appreciation.

Although the expected rise in 2024 may not be as substantial as in 2023, it's crucial to understand that home price appreciation accumulates over time. In simpler terms, if these experts' predictions hold true, after your home's value increases by 3.32% this year, it will further appreciate by 2.17% the following year. This serves as a compelling illustration of why owning a home is a long-term decision with significant benefits.

What Does This Mean for You?

Upon purchasing a home, the increase in its value due to appreciation contributes to the growth of your household wealth. To visualize how the value of a standard home might evolve in the coming years based on expert projections from the HPES, refer to the graph below:

In this illustration, suppose you acquired a $400,000 home at the start of this year. Considering the HPES forecast, it's conceivable that your household wealth could increase by over $71,000 over the upcoming five years.

If you're pondering the wisdom of purchasing a home, keep in mind its potential as a robust means of expanding your wealth over the long term.

Bottom Line

As per the consensus of experts, home prices are anticipated to experience a more typical rate of growth in the coming five years. If you're prepared to embark on the journey of homeownership, understand that making the decision today can establish a foundation for enduring prosperity as both home values and your personal net worth increase. Begin the homebuying process by reaching out to a local real estate agent today.