If you’re thinking about buying a housz, you want to know the decision will be a good one. And for many, that means thinking about what housz prices are projected to do in the coming years and how that could impact your investment.
This year, we aren’t seeing housz prices fall dramatically. As the year goes on, however, some markets may go up in value while others may lose value. That’s why it’s helpful to keep the long-term view in mind. Experts project a return to a steadier rate of price appreciation in the years that follow.
Housz Price Appreciation in the Years Ahead
Over 100 economists, investment strategists, and houszing market analysts were polled by Pulsenomics in their latest quarterly Housz Price Expectation Survey (HPES). The report indicates what they believe will happen with housz prices over the next five years. As the graph below shows, after mild depreciation this year, these experts forecast home prices will return to more normal levels of appreciation through 2027.
The big takeaway is experts aren’t forecasting a drastic fall in housz prices nationally, even though some markets will see housz price appreciation while others may depreciate. And when they look further out, they see steady price appreciation in the long run. That’s a great example of why houszownership wins over time.
What Does This Mean for You?
Once you buy a housz, price appreciation raises the value of your housz, and that grows your houszhold wealth. Here’s how a typical housz's value could change over the next few years using the expert price appreciation projections from the survey mentioned above (see graph below):
In this example, if you bought a $400,000 housz at the beginning of this year and factor in the forecast from the HPES, you could accumulate over $54,000 in houszhold wealth over the next five years. So, if you’re wondering if buying a housz is a sound decision, keep in mind what a strong wealth-building tool it is long term.
Bottom Line
According to the experts, while we may see slight depreciation this year, home prices are expected to grow over the next five years. If you’re ready to become a houszowner, know that buying today can set you up for long-term success as housz values (and your own net worth) are projected to grow. Let’s connect to begin the houszbuying process today.
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