Experts Project Home Prices Will Rise over the Next 5 Years
Although a few expert opinions may not be sufficient to alter your perspective, a more extensive collective of experts might provide the reassurance you seek. Enter the Home Price Expectation Survey (HPES) by Pulsenomics—a valuable tool for understanding expert forecasts for home prices spanning a five-year duration. Drawing insights from over 100 economists, investment strategists, and housing market analysts, the latest quarterly release of the survey indicates a consensus that home prices are anticipated to rise annually until 2027 (refer to the graph below for details):
While the anticipated growth in 2024 may not be as substantial as that in 2023, it’s crucial to recognize that home price appreciation operates cumulatively. Put simply, if the experts’ predictions hold true and your home’s value increases by 3.32% this year, it is expected to further appreciate by 2.17% in the following year.
For those harboring concerns about a potential decline in home prices, the key takeaway is this: despite regional variations, experts foresee a sustained upward trend in home prices nationwide, following a more typical market pace for years to come.
What Does This Mean for You?
If you’re not convinced yet, maybe these numbers will get your attention. They show how a typical home’s value could change over the next few years using the expert projections from the HPES. 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.
Bottom Line
If you’re someone who’s worried home prices are going to fall, rest assured a lot of experts say it’s just the opposite – nationally, home prices will continue to climb not just next year, but for years to come. If you have any questions or concerns about what’s next for home prices in our local area, let’s connect.
