BRG | Feb 1, 2024 | 0
The future of home price appreciation and what it means for you
Consumers are wondering what will happen with home values over the next few years. Some are concerned that the recent run-up in home prices will lead to a situation like the housing crash 15 years ago.
However, experts say the market is totally different today. Odeta Kushi, Deputy Chief Economist at First American, tweeted just last week on this issue:
“We do need price appreciation to slow today (it’s not sustainable over the long run) but high price growth today is supported by fundamentals- short supply, lower rates & demographic demand. And we are in a much different & safer space: better credit quality, low DTI [Debt-To-Income] & tons of equity. Hence, a crash in prices is very unlikely.”
Price appreciation will slow from the double-digit levels we’ve seen over the last two years. However, experts believe home values will not depreciate.
Pulsenomics released the latest Home Price Expectation Survey – a survey of a national panel of over 100 economists, real estate experts, and investment / market strategists. It forecasts home prices will continue appreciating over the next five years. The expected year-over-year rates of home price appreciation based on the average of all 100+ projections from 9% in 2022 to 3.57% in 2026.
What Does This Mean for You as a Buyer?
With a limited supply of homes available for sale and both prices and mortgage rates increasing, it can be a challenging market to navigate as a buyer. But buying a home sooner rather than later has its benefits. Waiting to buy, you’ll pay more in the future, but if you buy now, you’ll be in the position to make future price increases work for you. Once you buy, those rising home prices will help build your home’s value, your own household wealth through home equity.
If you’re trying to decide whether to buy now or wait, the key is knowing what’s expected to happen with home prices. Experts say prices will continue to climb in the years ahead, just at a slower pace. So, if you’re ready to buy, doing so now may be your best bet for your wallet. It’ll also give you the chance to use the future home price appreciation to build your own net worth through rising equity.
If you want to get started, let’s connect today!
Questions about buying or selling a home in Beaverton? Contact Donna Meeuwsen at 503.583.3200 or email firstname.lastname@example.org