Experts Predict that Home Prices Will Rise Over the Next Five Years.
Despite the fact that most of the country's home prices are rising, many people are concerned that there will be another price crash in the near future. In fact, a recent survey from Fannie Mae shows that 23% of consumers think prices will fall over the next 12 months. That’s nearly one in four people who are dealing with that fear—maybe you’re one of them.
Experts Project Ongoing Appreciation
While seeing a small handful of expert opinions may not be enough to change your mind, hopefully a larger group of experts will reassure you. Here’s that larger group.
The Home Price Expectation Survey (HPES) from Pulsenomics is a great resource to show what experts forecast for home prices over a five-year period. It includes projections from over 100 economists, investment strategists, and housing market analysts. And the results from the latest quarterly release show home prices are expected to go up every year through 2027 (see graph below):
And while the projected increase in 2024 isn’t as large as in 2023, remember that home price appreciation is cumulative. In other words, if these experts are correct, after your home’s value rises by 3.32% this year, it should go up by another 2.17% next year.
If you’re worried home prices are going to fall, here’s the big takeaway. Even though prices vary by local area, experts project they’ll continue to rise across the country for years to come at a pace that’s more normal for the market.
What Does This Mean for You?
If you are still not convinced, perhaps these figures will persuade you. They use expert projections from the HPES to show how the value of a typical home could change over the next few years. Check out the graph below:
In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in household wealth over the next five years.
If you are concerned that home prices will fall, rest assured that many experts believe the opposite - that national home prices will continue to rise not just next year, but for years to come. Let us talk if you have any questions or concerns about what is next for home prices in our area.