If you’re considering purchasing a home, one important factor to take into account is the future projections regarding home prices and their potential impact on your investment. Although negative news about home prices has been prevalent over the past year, it is worth noting that they are performing better than initially anticipated and are experiencing a nationwide upswing. Moreover, data suggests that experts anticipate a continued appreciation in home prices.
Prices According To The Experts
Pulsenomics conducted the latest quarterly Home Price Expectation Survey (HPES), which involved polling over 100 economists, investment strategists, and housing market analysts. The survey results reveal the projections made by panelists regarding home prices for the next five years. These expert forecasts consistently predict annual increases in home prices through 2027.
Photo Credit Keepingcurrentmatters.com
For those who may have been concerned about the possibility of declining home prices due to online reports, it is reassuring to know that experts anticipate a sustained rise in prices across the country in the coming years, even though local market variations may exist. These numbers provide strong evidence of a return to more typical levels of home price appreciation.
While the projected increase in 2024 may not be as substantial as that in 2023, it is important to recognize that home price appreciation is cumulative. In other words, if these experts’ predictions prove accurate, after your home’s value increases by 3.32% this year, it will appreciate by an additional 2.17% the following year. This serves as a compelling example of why owning a home is a long-term investment choice that yields significant benefits over time.
Why Is This Important?
This anticipation of increased prices necessitates the consideration for potential substantial growth in your household wealth through price appreciation. To visualize how the value of a typical home may change in the coming years using the expert projections from the HPES, please refer to the graph below:
Photo Credit: Keepingcurrentmatters.com
In this scenario, let’s assume you acquired a home valued at $400,000 at the beginning of this year. If you factor in the forecasts from the HPES, it is possible to accumulate more than $71,000 in household wealth over the next five years.
Final Thoughts On Price Increase
In summary, experts are of the opinion that home prices are poised to experience more moderate growth over the next five years. If you are prepared to embark on the journey of homeownership, understand that purchasing a home today can position you for long-term success as both home values and your net worth continue to increase. Feel free to connect with us to initiate the homebuying process today.
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