Are you thinking of buying a house? So should you buy it now or wait? No one can make the decision for you, but here are some tips to help you decide:
What will happen to housing prices in the future?
Each quarter, Fannie Mae and Pulsenomics release the results of their Home Price Expectations Survey (HPES). More than 100 experts, including economists, real estate experts, investment and market strategists, were asked what will happen to house prices.
In a recent study, these experts predict that home prices will continue to rise over the next five years (see chart below).
All the green on this map will tell you. Prices are not expected to drop. Instead, they say it will grow by 3-4% every year.
While home prices are not expected to rise as much in 2025 as they did in 2024, keep in mind that this growth could increase significantly over time. That’s how it works. If what these experts are saying is correct and home prices have risen 3.78% this year, they will rise another 3.36% next year. And the following year, 3.87% were added.
What does this mean to you?
Knowing that prices are expected to rise will help you feel better about buying a home. Because that means your home is an asset that will increase in value for years to come.
If you’re still not convinced, these numbers might get your attention. We use HPES expert forecasts to show how the value of the average home will change over the next few years. See the chart below.
Based on the forecasts, suppose you purchased a home for $400,000 earlier this year. According to these estimates, it’s possible that over the next five years, your household wealth could increase by more than $83,000 as the value of your home appreciates. However, delaying your decision to purchase a home may result in increased costs in the future.