“People should not anticipate another double-digit price appreciation. Those days are over. . . . We may return to more normal price appreciation of 4%, 5% a year.”
Should I buy now or should I wait? is probably the top question on your mind if you've been considering purchasing a home. Despite the fact that nobody can decide for you, here is some information that might be useful.
For you, that ongoing appreciation should give you peace of mind your investment in homeownership is worthwhile because you’re buying an asset that’s projected to grow in value in the years ahead.
As the graph conveys, even at a more typical pace of appreciation, you still stand to make significant equity gains as your home grows in value. That’s what’s at stake if you delay your plans.
The Future of Home Price Appreciation
To forecast future home price increases, Pulsenomics conducts quarterly polls of a national panel of more than 100 economists, real estate specialists, and investment and market strategists. The Home Price Expectation Survey is the result. According to the most recent publication, housing prices will rise over the following five years (see graph below):
The graph indicates that as the market slows from the unsustainable pace it experienced during the pandemic, the rate of appreciation will moderate over the following few years. According to experts, home price growth will continue after this year, but at rates that are more typical for the market. The National Association of Realtors' (NAR) Chief Economist, Lawrence Yun, says:
What Does That Mean for You?
Here is how a typical home could increase in value over the following several years using the professional price appreciation forecasts from the aforementioned Pulsenomics poll to give you a sense of how this could affect your net worth (see graph below):As the graph conveys, even at a more typical pace of appreciation, you still stand to make significant equity gains as your home grows in value. That’s what’s at stake if you delay your plans.
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