Should I Buy a Home Right Now?
If you've been considering buying a home, the most common question on your mind is probably whether or not it's time to buy. While no one can tell you if it's now or later, here is some information that may assist you in making your decision.
The Future of Home Price Appreciation
Pulsenomics surveys a national panel of over 100 economists, real estate experts, and investment and market strategists each quarter to produce predictions for future home price appreciation. The results of the Forecast are the Home Price Expectation Survey. It predicts that house prices will rise over the next five years in the most recent version (see graph below):
As the graph demonstrates, appreciation will moderate in the next few years as the market shifts away from its unsustainable rate during the pandemic. After this year, analysts expect home prices to rise at a more normal pace, but not drastically less than they have been. According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR):
“People should not anticipate another double-digit price appreciation. Those days are over. . . . We may return to more normal price appreciation of 4%, 5% a year.”
For you, that continuing appreciation should provide peace of mind that your investment in homeownership is worthwhile because you're acquiring an asset that will likely appreciate in value over time.
What Does That Mean for You?
To provide you an idea of how this may affect your net worth, here's how a typical house might appreciate in value during the coming years based on Pulsenomics' professional price appreciation forecasts (see graph below):
Even if you buy at a slower pace of appreciation, as the graph shows, you may still make significant equity gains as your home's value rises. That is what will be lost if you put off your plans.
If you're looking to purchase a home, keep in mind that purchasing today may help you achieve long-term success if the value (and your own net worth) of your asset is expected to rise with the country's ongoing house price appreciat. Connect with The Perreault Group to begin your homebuying process today.
Post a Comment