What Experts Project for Home Prices Over the Next 5 Years

<article class="post-795183 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-795183"><span class="entry-date">September 12, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">What Experts Project for Home Prices 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=What+Experts+Project+for+Home+Prices+Over+the+Next+5+Years&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fwhat-experts-project-for-home-prices-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="What Experts Project for Home Prices Over the Next 5 Years Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20230912-What-Experts-Project-for-Home-Prices-Over-The-Next-5-Years.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>If you’re planning to <a href="https://www.simplifyingthemarket.com/2023/09/07/get-ready-for-smaller-more-affordable-homes/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">buy a home</a>, one thing to consider is what experts project <a href="https://www.simplifyingthemarket.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a> will do in the future and how that might affect your investment. While you may have seen negative news over the past year about home prices, they’re doing far better than <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">expected</a> and are rising across the country. And data shows, experts forecast home prices will keep appreciating.</p>
<h4><strong>Experts Project Ongoing Appreciation</strong></h4>
<p><em>Pulsenomics</em> polled over 100 economists, investment strategists, and housing market analysts in the latest quarterly <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank"><em>Home Price Expectation Survey</em></a> (HPES). The results show what the panelists project will happen with home prices over the next five years. Here are those expert forecasts saying home prices will go up every year through 2027 (<em>see graph below</em>):<a href="https://www.simplifyingthemarket.com/content/images/20230911/20230912-Estimated-Home-Price-Performance.png?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230911/20230912-Estimated-Home-Price-Performance.png"/></a>If you’re someone who was worried home prices would fall because of stories you’ve read online, here’s the big takeaway.<strong> Even though home prices vary by local market, experts project prices will continue to rise across the country for years to come. </strong>And these numbers indicate the return to more normal <a href="https://www.simplifyingthemarket.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home price appreciation</a>.<strong> </strong></p>
<p>And while the projected increase in 2024 isn’t as large as 2023, it’s important to recognize <strong>home price appreciation is cumulative</strong>. In other words, if these experts are correct, after your home’s value rises by 3.32% this year, it’ll appreciate by another 2.17% next year. This is a good example of why owning a home is a choice that wins big over time.</p>
<h4><strong>What Does This Mean for You?</strong></h4>
<p>Once you buy a home, price appreciation raises your home’s value, and that grows your <a href="https://www.simplifyingthemarket.com/2023/09/01/homeowners-have-a-lot-of-equity-right-now-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">household wealth</a>. To see how a typical home’s value could change in the next few years using the expert projections from the HPES, check out the graph below:<a href="https://www.simplifyingthemarket.com/content/images/20230911/20230912-Potential-Growth-In-Household-Wealth.png?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230911/20230912-Potential-Growth-In-Household-Wealth.png"/></a>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 household wealth over the next five years.</p>
<p>So, if you’re thinking about whether buying a home is a good choice, remember how it can be a powerful way to grow your <a href="https://www.simplifyingthemarket.com/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">wealth</a> in the long run. </p>
<h3>Bottom Line</h3>
<p>According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Connect with a local real estate agent to start the homebuying process today.</p>
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