Experts Project Home Prices Will Rise over the Next 5 Years

Despite signs pointing to rising home prices in most parts of the country, some folks still worry about another price drop happening soon. A recent survey by Fannie Mae found that 23% of people think prices will fall in the next 12 months – maybe you're one of them.

To ease that worry, let's see what the experts say about home prices not just next year, but over the next five years.

Experts Say Prices Will Keep Going Up If a handful of expert opinions doesn't convince you, maybe a larger group will. The Home Price Expectation Survey (HPES) by Pulsenomics gathers forecasts from over 100 economists, investment experts, and housing market analysts. The latest release shows that experts expect home prices to increase every year until 2027.

While the increase in 2024 might not be as much as in 2023, it's important to know that home price appreciation adds up. So, if the experts are right and your home's value goes up by 3.32% this year, it should go up by another 2.17% next year.

Don't Worry About Falling Prices If you're concerned about home prices dropping, here's the main point: even though prices can differ depending on where you are, experts think they'll keep going up across the country for years at a pace that's more normal for the market.

What Does This Mean for You? If you're not convinced yet, check out these numbers. They show how a typical home's value could change in the next few years using the expert projections from the HPES. Look at the graph below:

For example, let's say you bought a $400,000 home at the start of this year. If the HPES forecast is right, you could potentially accumulate more than $71,000 in household wealth over the next five years.

In Conclusion If you're worried about home prices dropping, relax – many experts say the opposite is true. Nationally, home prices are expected to keep going up not just next year, but for a while. If you have questions or concerns about what's next for home prices in your local area, let's chat.