Regardless of there being data showing trends of regular home price increases there are still many people who worry that there will be another crash coming soon. Fannie Mae recently released a survey that 23% of consumers believe that home prices will fall over the next 12 months. While nobody knows exactly what will happen, here is what experts are saying not just for the next year but for the next five.
Projected Home Price Appreciation
Don’t just take it from one or two sources, 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 report 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 anticipated 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 is the big takeaway. Even though prices are going to vary of course by local area, experts forecast that 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 some context, if you purchased a home in January of 2023 for $400,000 then based on these predictions from the HPES then you could potentially accumulate more than $71,000 in household wealth over the next five years.
So ultimately there are many experts that 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.