What Experts Expect for Home Prices in the Next 5 Years

What Experts Expect for Home Prices in the Next 5 Years

If you're thinking about buying a home, you should think about what experts predict home values will do in the future and how that may affect your investment. While you may have heard unfavorable news regarding property prices in the last year, they are doing considerably better than projected and are rising across the country. And, as the data shows, analysts predict that property values will continue to rise.

Experts Project Ongoing Appreciation

Pulsenomics polled over 100 economists, investment strategists, and housing market analysts in the latest quarterly Home Price Expectation Survey (HPES). The results show what the panelists project will happen to home prices over the next five years. Here are those expert forecasts saying home prices will go up every year through 2027 (see graph below):

If you’re someone who was worried home prices would fall because of stories you’ve read online, here's the big takeaway. Even though home prices vary by local market, experts project prices will continue to rise across the country for years to come. And these numbers indicate the return to more normal home price appreciation.

And while the projected increase in 2024 isn’t as large as 2023, it’s important to recognize 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’ll appreciate by another 2.17% next year. This is a good example of why owning a home is a choice that pays off big over time.

What Does This Mean for You?

When you buy a property, price appreciation increases the value of your home, which increases your household wealth. Check out the graph below to see how the value of a typical property could vary over the next few years based on HPES expert projections:

Let's imagine you purchased a $400,000 property at the beginning of this year. With the HPES projection, you may possibly accumulate more than $71,000 in household wealth over the next five years.

So, if you're debating whether buying a home is a good investment, keep in mind that it can be a strong method to enhance your wealth in the long run. 

Bottom Line

Experts predict that property prices will rise at a more regular rate during the next five years. If you're ready to buy a home, remember that doing so now can position you for long-term success as home values (and your own net worth) rise. Let's get started on the home-buying process right away.