Despite there being data showing trends of regular home price increases there are still many who fear that there will be another crash coming soon. Fannie Mae recently shared a survey that 23% of consumers believe that home prices will fall over the next 12 months. While nobody has a crystal ball to say exactly what will happen, here is what experts are saying not just for the next year but for the next five.
Don’t just take it from a few people, consider what the vast majority of experts are suggesting to reassure you. The Home Price Expectation Survey (HPES) from Pulsenomics includes projections from over 100 economists, investment strategists, and housing market analysts. The latest quarterly release shows that home prices are projected by these experts to increase every year through the year 2027. Anticipated increases include:
- 2023 - 3.32%
- 2024 - 2.17%
- 2025 - 3.24%
- 2026 - 3.79%
- 2027 - 4.18%
Even though the increase speculated for 2024 isn’t as large as 2023, just remember appreciation is cumulative so it will be sizable over time regardless. But if you’re worried home prices are going to start to fall, here’s the big takeaway. Even though prices are going to vary by local area, experts project they’ll continue to rise across the country for years to come at a pace that’s more normal for the market.
To put all of this into context, if you purchased a home in January of 2023 for $400,000 then based on these predictions from the HPES you could potentially accumulate more than $71,000 in household wealth over the next five years.
So the bottom line is many experts predict that home prices will increase overall rather than show signs of decline. So if you are in the market to buy a home it still may be a good time to do so.