Despite the prevailing data indicating a nationwide rise in home prices, concerns about a potential market crash linger. The most recent Fannie Mae survey showed that 23% of consumers still anticipate a decrease in home prices over the next year.
While individual opinions may vary, the consensus among a broader spectrum of experts can offer more substantial reassurance. The Home Price Expectation Survey (HPES) conducted by Pulsenomics is a key resource for understanding expert predictions. Drawing on insights from over 100 economists, investment strategists, and housing market analysts, the survey predicts a consistent rise in home prices through 2027. Even with the growth rate in 2024 being less than in 2023, the cumulative increase in value is projected to be significant.
While real estate markets vary by location, the overarching trend suggests a steady climb in home prices across the country, aligning with historical market norms.
Personal Implications of Market Trends
Using the projected numbers, starting with a $1,000,000 home, the calculated values for the next five years, based on the appreciation rates are as follows:
By 2024: The value would increase to about $1,033,200
By 2025: The value would increase to about $1,055,620
By 2026: The value would increase to about $1,089,823
By 2027: The value would increase to about $1,131,128
By 2028: The value would increase to about $1,178,408
So a $1,000,000 home would potentially grow in value by about $178,407.50 over the next five years,
The consensus among experts is that national home prices are expected to rise, not just in the near term but for several years ahead. If you have questions or need guidance on local market trends, don’t hesitate to reach out for personalized advice.