If you’re amongst those who’ve been reading stories online that home prices are about to fall, here’s some good news for you. According to Pulsenomics, over 100 economists, investment strategists, and housing market analysts participated in the quarterly Home Price Expectation Survey (HPES) to predict what would happen with home prices over the next five years. The survey results indicate that home prices will continue to rise across the country for years to come, which is great news for anyone hoping to invest in real estate.
While home prices vary across local markets, experts project that housing prices are set to return to more normal price appreciation. The survey’s results forecast that home prices will increase in every year through 2027. This means that if you’re a homeowner, it’s essential to hold onto your property and remain patient. Your property’s appreciation could be an excellent opportunity to accumulate wealth over time.
For instance, the projected increase in 2024 may not be as substantial as that projected for 2023, but it’s crucial to note that appreciation is cumulative. This indicates that after your home’s value increases by 3.32% this year, the rate is expected to slow down a bit, and it’s projected to appreciate by 2.17% next year. Therefore, owning a home should be a long-term investment approach.
If you’re a potential homeowner looking to invest in real estate, then these forecasts provide a good indication of what you can expect. By tracking the housing market and identifying areas that are likely to experience tremendous growth, you can make informed decisions when it comes to property purchases. The HPES projections can also assist homebuyers in setting realistic expectations about future home list price increases.
To get a better idea of what your home’s projected value could look like in the future, consider using the HPES forecast as a guide. For example, if you purchased a $400,000 home at the start of this year, the HPES forecasts suggest that you could accumulate more than $71,000 in household wealth over the next five years.
In conclusion, the Pulsenomics’ Home Price Expectation Survey indicates that the trend of rising home prices is set to remain, with experts forecasting an increase in home prices every year through 2027. While it’s essential to keep in mind that local market conditions could cause variations in real estate appreciation, the general increase in home prices indicates a positive outlook for homeowners and real estate investors. Homeownership isn’t just a place to live; it’s also a choice that can lead to substantial financial wealth creation, especially in areas where home appreciation is on the rise.