Is It a Good Time to Buy a Home?

Contemplating the purchase of a home? You may be pondering whether to make the move now or wait for a more opportune moment. While nobody can make that decision for you, here's some valuable information to aid in your deliberation.

What's the Outlook for Home Prices?

Every quarter, Fannie Mae and Pulsenomics conduct the Home Price Expectations Survey (HPES), gathering insights from over 100 experts including economists, real estate professionals, and market strategists regarding their predictions for home prices.

According to the latest survey, these experts anticipate a continued upward trend in home prices over the next five years, as illustrated in the graph below:

The prevalence of green on this chart signifies a consensus among experts that price declines are not anticipated. Instead, they foresee a steady annual increase of 3-4%.

While the rate of price growth may moderate slightly in 2025 compared to 2024, it's essential to recognize that these incremental increases can accumulate significantly over time. For instance, if your home's value rises by 3.78% this year, it's projected to appreciate by 3.36% the following year and another 3.87% the year after.

What Does This Mean for You?

The projection of sustained price growth should instill confidence in the decision to purchase a home. It indicates that your home is poised to appreciate in value over the coming years, bolstering its status as a valuable asset.

If you're still on the fence, consider the numerical representation of how a typical home's value could evolve in the coming years, based on expert forecasts from the HPES. Refer to the graph below:

For instance, envision purchasing a home valued at $400,000 at the beginning of this year. According to these projections, you could potentially accumulate over $83,000 in household wealth over the next five years as your home appreciates in value.

Certainly, you could opt to postpone your purchase, but delaying could translate to higher costs down the line.

In Conclusion

If the thought of owning your own home is beckoning and you're financially prepared to make the leap, buying now may be a prudent decision. With home prices expected to ascend, investing in homeownership could prove to be a savvy move. Let's collaborate to kickstart your home search today.