Thinking about buying a home? If so, you are probably wondering should I buy now or wait? Nobody can make this decision for you, but here’s some information that can help you decide.
What’s Next for Home Prices?
In the latest survey, experts say home prices are going to keep going up for the next five years.
Here’s what all the green on this chart should tell you. Experts are not expecting any price declines. Instead, they aree saying we will see a 3-4% rise each year. And even though home prices aren’t expected to climb by as much in 2025 as they are 2024, keep in mind these increases can really add up over time. If these experts are right and your home’s value goes up by 3.78% this year, it’s set to grow another 3.36% next year. And another 3.87% the year after that.
What Does This Mean for You?
Knowing that prices are forecasted to keep going up should make you feel good about buying a home. That’s because it means your home is an asset that’s projected to grow in value in the years ahead. If you are not convinced yet, maybe these numbers will get your attention. They show how a typical home’s value could change over the next few years using expert projections from HPES.
In this example, imagine you bought a home for $400,000 at the start of this year. Based on these projections, you could end up gaining over $83,000 in household wealth over the next five years as your home grows in value. Of course, you could also wait. If you do, buying a home is just going to end up costing your more.