For prospective homebuyers, it's crucial to take into account the projections of housing market experts regarding future home prices and how these forecasts may impact your investment. Despite negative reports on home prices in the past year, they have outperformed expectations and are experiencing growth nationwide. According to data, experts anticipate a continued appreciation in home prices.
Experts Project Ongoing Appreciation Experts project a continued appreciation in home prices over the next five years, as indicated by the latest quarterly Home Price Expectation Survey (HPES) conducted by Pulsenomics. The survey, which involved over 100 economists, investment strategists, and housing market analysts, reveals that panelists anticipate a yearly increase in home prices through 2027. This forecast, illustrated in the graph below, dismisses concerns about a potential decline in home prices.
While there may be variations in local markets, the overall trend points towards a sustained rise in home prices across the country, reflecting a return to more typical home price appreciation. Additionally, the cumulative nature of home price appreciation is highlighted, emphasizing the long-term advantages of homeownership. What Does This Mean for You?
After purchasing a home, the appreciation in its value contributes to the growth of your household wealth. The graph below illustrates how the value of a typical home could change over the next few years based on expert projections from the Home Price Expectation Survey (HPES).
For instance, if you bought a $400,000 home at the beginning of the year and consider the HPES forecast, you might potentially accumulate over $71,000 in household wealth over the next five years. This example underscores the powerful long-term wealth-building aspect of homeownership, making it a significant financial choice. Bottom Line
According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Let’s connect to start the homebuying process today. 626-653-6903 | info@thechouteam.com | www.thechouteam.com
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