If you’re thinking about buying a home, you want to know the decision will be a good one. And for many, that means thinking about what home prices are projected to do in the coming years and how that could impact your investment.
This year, nationally, we aren’t seeing home prices fall dramatically. Locally, here in East Tennessee, they are actually rising, not falling. As the year goes on, markets may go up in value while others may lose value. That’s why it’s helpful to keep the long-term view in mind. Nationally, experts project a return to a steadier rate of price appreciation in the years that follow.
Over 100 economists, investment strategists, and housing market analysts were polled by Pulsenomics in their latest quarterly Home Price Expectation Survey (HPES). The report indicates what they believe will happen with home prices nationally over the next five years. They believe after mild depreciation this year, home prices will return to more normal levels of appreciation through 2027.
The big takeaway is experts aren’t forecasting a drastic fall in home prices nationally, even though some markets will see home price appreciation (like us!) while others may depreciate. And when they look further out, they see steady price appreciation in the long run. That’s a great example of why homeownership wins over time.
What Does This Mean for You? Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. Here’s how a typical home’s value could change over the next few years, just using the expert price appreciation projections from the survey mentioned above.
In this example, if you bought a $400,000 home at the beginning of this year and factor in the forecast from the HPES, you could accumulate over $54,000 in household wealth over the next five years. So, if you’re wondering if buying a home is a sound decision, keep in mind what a strong wealth-building tool it is long term.
What’s the bottom line? According to the experts, while some areas may see slight depreciation this year, home prices are expected to grow over the next five years. And we know we are already seeing that appreciation here in East Tennessee. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) are projected to grow. Let’s connect to begin the homebuying process today.
Contact the Troy Stavros TEAM with CornerStone Realty Associates today at 865-999-0925 with any questions or to discuss your goals of buying or selling a home in East Tennessee. We look forward to serving you!
