Many of our clients are wondering what will happen with home values over the next few years. Some are concerned that the recent run-up in home prices may lead to a situation similar to the housing crash 15 years ago. 

While price appreciation will slow from the double-digit levels the market has seen over the last two years, experts believe home values will not depreciate (where a home would lose value). 

To this point, Pulsenomics just released the latest Home Price Expectation Survey – a survey of a national panel of over 100 economists, real estate experts, and investment and market strategists. It forecasts home prices will continue appreciating over the next five years. Below are the expected year-over-year rates of home price appreciation based on the average of all 100+ projections: 

• 2022: 9%
• 2023: 4.74%
• 2024: 3.67%
• 2025: 3.41%
• 2026: 3.57%

Those responding to the survey believe home price appreciation will still be relatively high this year, and then return to more normal levels over the next four years. 

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 does have its benefits. If you wait to buy, you'll pay more in the future. However, 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 you build your home's value, and by extension, your household wealth through home equity. 

If you're trying to decide whether to buy or sell 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 – more normal pace. 

So, if you're ready to buy, doing so now may be your best bet for your overall financial future and lifestyle. If you want to get started buying or selling, let's connect today. Work with us – Win with us! 

Dana & Team