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Contemplating a home purchase? One big question you might have is whether to buy now or wait. While the decision ultimately rests with you, here's some insightful information to aid your choice.
Future Home Price Trends
Every quarter, Fannie Mae and Pulsenomics release findings from the Home Price Expectations Survey (HPES), which polls over 100 experts including economists, real estate professionals, and market strategists about their predictions for home prices.
In the most recent survey, these experts collectively forecasted a continued upward trajectory in home prices over the next five years, as illustrated in the graph below:
Here's the takeaway from the chart's green trend: no price declines are anticipated. Instead, experts project a moderate annual increase of 3-4%.
While the rate of increase in home prices is expected to slow in 2025 compared to 2024, these incremental rises can accumulate significantly over time. For instance, if your home's value increases by 3.78% this year, it could rise by 3.36% next year and another 3.87% the following year.
What Does This Mean for Buyers?
The forecasted continuous rise in home prices should bolster your confidence in purchasing a home. It indicates that your home is an appreciating asset poised for growth in the years ahead.
To illustrate, consider these projections depicting the potential value changes for a typical home in the coming years, based on HPES expert insights:
In this scenario, let's say you purchased a home for $400,000 at the beginning of this year. According to these forecasts, over the next five years, your home's value could appreciate by more than $83,000, increasing your household wealth.
However, delaying your purchase would likely result in higher costs.
In conclusion, if you're considering homeownership and are financially prepared, buying now could be advantageous. Your home is anticipated to appreciate in value, making it a potentially wise investment. Collaborating with a local real estate agent can help you begin your home search.
These are pressing times, especially now when many feel a heightened sense of urgency to enter the real estate market due to rapidly increasing home prices. Whether you're considering buying or selling property, please don't hesitate to reach out. I can provide you with a detailed overview of the process, discuss the next steps, and help create your personalized homeownership plan. Remember, you don't have to be in this alone, and my job is to ensure you have clear guidance and expertise every step of the way.
Maritza Cortazar | My AZ Homegirl Guiding You Home From Start To Keys.