When setting out to purchase your dream home, it’s crucial to factor in expert forecasts on future home price movements so you can get the most bang for your buck. Despite some bleak headlines from the media in the past year of how the housing market will come crashing down this year, home values have been quite resilient and have even seen steady growth nationwide. Let’s dive into this topic using data terms, shall we, and you’ll find most specialists anticipate and forecast a continued rise in property prices.
Anticipated Continued Growth in Home Values
In a recent Home Price Expectation Survey (HPES), Pulsenomics has gathered insights from more than 100 professionals of different calibers, including economists, investment planners, and real estate market specialists. This survey reveals the panel’s collective outlook and input on home prices for the upcoming five years. The consensus and breakdown? A steady rise in home values each year until 2027. Check out the detailed graph below to see these expert predictions.
Have you ever come across online articles and headlines painting a gloomy picture of falling home prices and felt a pang of concern? Well, let’s clear the air, shall we? Even though home prices might see fluctuations in local markets from time to time, the national consensus among experts is promising that home prices are set to climb for the foreseeable future. This shift suggests a return to a more stable, regular home price growth.
Interestingly, even if the rate of appreciation in 2024 is a tad slower than in 2023, it’s essential to see the bigger picture in the long run. At the end of the day, home appreciation truly compounds. Meaning, that if the gurus are on point and the forecast data are accurate, your home’s value goes up by 3.32% this year, and you can anticipate another bump of around 2.17% the following year. This kind of scenario underscores the timeless wisdom and investment: homeownership usually tends to be a long-term winner in the wealth-building game.
How Does This Impact You Directly per se?
Owning a home isn’t just about having a place to call your own; it’s also a long-term investment itself if you’re going to think about it. As home prices tend to rise, so does the value of your property.
Curious about potential growth in a typical home’s value? I know these numbers are lower than what we are accustomed to see with home prices in San Diego but, let’s study and dive into the chart below; these insights are from the latest expert forecasts by HPES.
Just imagine and visualize you purchased a home for around $400,000 at the start of the year. Taking into account predictions from the HPES and using the right formula, your home could contribute over $71,000 to your personal wealth in just half a decade. Quite tempting and intriguing, right? Consider this: Homeownership is not just about having a place to call yours; it’s a strategic move to boost your financial well-being over time.
Industry professionals, based on data, anticipate a steady rise in home prices within the coming half-decade. For those who are contemplating homeownership and looking for a place to call their home, taking the leap now could be a smart move for future financial growth as the value of homes—and consequently your personal assets—increases. Let’s touch base and embark on your home-buying journey together.
Feel free to reach out to the McT Real Estate Group to get you started on your home-buying journey and if you have any questions about real estate!