Real Estate Experts’ Predictions: What Lies Ahead for Home Prices?

By John West

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What can you expect from home prices in the future? If you’re planning to sell or buy a home, one thing to consider is where home prices will go in the future and how that might affect your real estate goals. Despite negative news in the past year, home prices are performing better than expected, rising across the country. Data indicates that this trend may continue.

PulseNomics conducted a survey, referred to as Home Price Expectation Survey (HPC), which involved over 100 economists, investment strategists, and housing market analysts. The results show what panelists project will happen with home prices over the next five years.

Here are the expert forecasts: Home prices are expected to increase every year through 2027. If you’re concerned about prices falling, the big takeaway is that experts predict prices will continue to rise across the country for at least the next five years, indicating a return to more normal house price appreciation.

While the projected increase in 2024 isn’t as large as in 2023, it’s important to note that home price appreciation is cumulative. For example, if home values rise by 3.3% this year, they’ll appreciate by 2.17% the next year. This demonstrates why owning a home is a smart choice that pays off over time.

So, what does this mean for you? When you buy a home, price appreciation increases your home’s value, growing your household wealth. To see how a typical home value could change in the next few years using these expert projections, check out this graph at 2:06 in the video.

In this example, let’s say you bought a home for $400,000 at the beginning of this year. Factoring in the forecast from HPC, you could potentially accumulate more than $71,000 in household wealth over the next five years.

If you’re wondering whether buying a home is a good choice, remember how powerful it can be in growing your wealth in the long run. Here’s the bottom line: According to experts, home prices are expected to grow at a more normal pace over the next five years. Since we all have shelter needs, we either rent our space and pay the landlord’s mortgage, or we can decide to buy our own home and start building our own equity and household wealth. The choice is yours.

We would love to help you achieve this goal. If you’re interested, deciding to buy a home today can set you up for long-term success as home values and your net worth grow. Call or email us; we’d love to help you!