If you're considering buying a home, it's essential to ensure that you make the right decision. For many, this means taking into account what housing prices will look like in the foreseeable future and understanding how this could impact your investment. An important factor to consider is whether housing prices are expected to rise or fall; if they are likely to remain stable, then this could be a sound option for those looking to invest with confidence. It's also wise to research current market trends and conditions in order to make an informed decision about buying a property. By taking a deeper look into the real estate market, potential buyers can gain a better understanding of where home values are headed and how their decisions may affect their long-term investments.
The recently-released Home Price Expectation Survey (HPES) from Pulsenomics evaluated the predictions of over 100 economists, investment strategists and housing market analysts regarding house prices in the upcoming five years. Results of the survey support a mild depreciation this year followed by a return to more typical levels of appreciation lasting until 2027. The graph below illustrates this expected trend, providing an indicator of what these experts expect in terms of home price growth. Moreover, considering that historically low mortgage rates could potentially provide more incentives for buying real estate, it is reasonable to expect a higher rate of appreciation than what has been observed in recent years.
Once you invest in a home, its value may appreciate over time, leading to an increase in your household wealth. According to expert estimates from the survey mentioned previously (as demonstrated in the graph below), the average home's value could potentially rise significantly within the next few years. This means that homeowners will benefit from long-term financial gain as their property appreciates in value. Furthermore, any improvements or renovations made to the home may further enhance these price increases.
Experts consulted by the Home Price Expectation Survey (HPES) project that, while there may be a slight dip in house values this year, they will steadily increase over the next five years. If you are considering purchasing a home, it is important to understand that doing so now could give you a significant advantage in developing your net worth over time. With an average home price of $400,000, owning a house for five years could mean an increase of about $54,000 to your household wealth.
Buying today can thus be an effective way to create long-term financial security and stability. Get in touch with us today to start the process of becoming a homeowner and taking advantage of this incredible wealth-building opportunity.
