Experts Project Home Prices Will Rise over the Next 5 Years

<article class="post-867649 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-867649"><span class="entry-date">December 4, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Experts Project Home Prices Will Rise over the Next 5 Years</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Experts+Project+Home+Prices+Will+Rise+over+the+Next+5+Years&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fexperts-project-home-prices-will-rise-over-the-next-5-years%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Experts Project Home Prices Will Rise over the Next 5 Years Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20231205-Experts-Project-Home-Prices-Will-Rise-over-the-next-5-years.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>Even with so much data showing <a href="https://www.simplifyingthemarket.com/2023/10/23/why-home-prices-keep-going-up/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a> are actually rising in <a href="https://www.simplifyingthemarket.com/2023/11/14/home-prices-keep-climbing-in-most-markets/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">most of the country</a>, there are still a lot of people who worry there will be another price crash in the immediate future. In fact, a <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey" rel="noopener noreferrer" target="_blank">recent survey</a> from <em>Fannie Mae</em> shows that 23% of consumers think prices will fall over the next 12 months. That’s nearly one in four people who are dealing with that fear – maybe you’re one of them.</p>
<p>To help ease that concern, here’s what the <a href="https://www.simplifyingthemarket.com/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">experts</a> say will happen with <a href="https://www.simplifyingthemarket.com/2023/11/02/dont-believe-everything-you-read-about-home-prices/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a> not just <a href="https://www.simplifyingthemarket.com/2023/11/15/the-latest-2024-housing-market-forecast/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">next year</a>, but over the next five years.</p>
<h4><strong>Experts Project Ongoing Appreciation</strong></h4>
<p>While seeing a small handful of <a href="https://www.simplifyingthemarket.com/2023/09/08/home-price-forecasts-revised-for-2023-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">expert</a> opinions may not be enough to change your mind, hopefully, a larger group of experts will reassure you. Here’s that larger group.</p>
<p>The <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank"><em>Home Price Expectation Survey</em></a> (HPES) from <em>Pulsenomics</em> is a great resource to show what experts forecast for home prices over a five-year period. It includes projections from over 100 economists, investment strategists, and housing market analysts. And the results from the latest quarterly release show home prices are expected to go up every year through 2027 (<em>see graph below</em>):</p>
<p> <a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-Estimated-Home-Price-Performance.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-Estimated-Home-Price-Performance.png"/></a></p>
<p></p>
<p>And while the projected increase in 2024 isn’t as large as 2023, remember <a href="https://www.simplifyingthemarket.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home price</a> appreciation is cumulative. In other words, if these experts are correct after your home’s value rises by 3.32% this year, it should go up by another 2.17% next year.</p>
<p>If you’re worried home prices are going to fall, here’s the big takeaway. Even though <a href="https://www.simplifyingthemarket.com/2023/10/20/home-price-growth-is-returning-to-normal-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">prices</a> vary by local area, experts project they’ll continue to rise across the country for years to come at a pace that’s <a href="https://www.simplifyingthemarket.com/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">more normal</a> for the market.</p>
<h4><strong>What Does This Mean for You?</strong></h4>
<p>If you’re not convinced yet, maybe these numbers will get your attention. They show how a typical home’s value could change over the next few years using the expert projections from the HPES. Check out the graph below:</p>
<p> <a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-71363-Home-Price-Expectation-Survey.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-71363-Home-Price-Expectation-Survey.png"/></a></p>
<p></p>
<p>In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in <a href="https://www.simplifyingthemarket.com/2023/10/25/invest-in-yourself-by-owning-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">household wealth</a> over the next five years.</p>
<h3>Bottom Line</h3>
<p>If you’re someone who’s worried home prices are going to fall, rest assured a lot of experts say it’s just the opposite – nationally, home prices will continue to climb not just next year, but for years to come. If you have any questions or concerns about what’s next for home prices in your local area, connect with a real estate agent.</p>
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