Is It a Good Idea to Buy a Home Currently?

Considering purchasing a home? If that's the case, you might be asking yourself whether to buy immediately or delay. While the decision ultimately rests with you, here's some data that could aid in your decision-making process.

The Future of Home Prices: What Lies Ahead?

Every quarter, the Home Price Expectations Survey (HPES), conducted by Fannie Mae and Pulsenomics, releases its findings. This survey gathers insights from over 100 specialists—including economists, real estate experts, and investment and market strategists—on their predictions for future home prices.

In the most recent survey, experts predict a continued rise in home prices over the coming five years, as illustrated in the graph below:

The green sections on this chart suggest that experts are not predicting any price drops. Instead, they expect a yearly rise in home prices of 3-4%.

Although home prices are projected to increase less in 2025 than in 2024, it's important to consider how these incremental gains accumulate over time. Here's the scenario: if these experts are accurate and your home's value increases by 3.78% this year, it will rise by another 3.36% the following year, and then by 3.87% the year after that.

What Does This Mean for You?

Understanding that prices are expected to continue rising can be reassuring when considering the purchase of a home. This is because it indicates that your home is an asset likely to appreciate in value in the coming years.

If you're still on the fence, perhaps these figures will catch your eye. They illustrate the potential changes in the value of a typical home over the next few years, based on expert forecasts from the HPES. Take a look at the graph below:

Consider this scenario: if you purchased a home for $400,000 at the beginning of this year, these projections suggest you could see an increase in your household wealth of more than $83,000 over the next five years due to the appreciation of your home's value.

Naturally, you have the option to delay your purchase. However, waiting could mean that buying a home will ultimately be more expensive for you.

Bottom Line

If you feel it's the right moment to acquire your own property, and you're prepared and financially capable, purchasing a home now could be a wise decision. With home values anticipated to continue rising, securing a property sooner can be advantageous. Partnering with a local real estate agent is an excellent initial move to begin searching for your new home today.