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Is Now the Right Time to Purchase a Home?

Contemplating the idea of buying a home? It's natural to ponder whether the timing is optimal. While the decision ultimately rests with you, here’s some insight to aid your deliberation.

What's the Projection for Home Prices?

Regularly, Fannie Mae and Pulsenomics conduct the Home Price Expectations Survey (HPES), gathering opinions from over 100 experts comprising economists, real estate professionals, and market strategists regarding future home price trends.

According to the latest HPES findings, the consensus among these experts is that home prices will continue their upward trajectory over the next five years, as illustrated below:

Interpreting the abundance of green bars in the graph, it's apparent that a decline in prices isn’t anticipated. Instead, the forecast points to a modest annual increase of 3-4%.

While the rate of increase might taper slightly in 2025 compared to 2024, it's important to note that these increments can accumulate significantly over time. For instance, if your home's value escalates by 3.78% this year, it could grow by 3.36% next year and a further 3.87% the following year.

What Does This Mean for Prospective Buyers?

The forecasted continuous rise in home prices suggests a favorable scenario for potential buyers. It implies that purchasing a home now could translate to an appreciating asset over the years. To further emphasize this point, consider the projected evolution of a typical home's value over the coming years, as depicted in the following graph:

For example, if you were to purchase a home at $400,000 this year, based on these projections, you could potentially accumulate over $83,000 in household wealth over the next five years as your property appreciates.

Conversely, delaying your purchase may result in higher costs down the line. If you find yourself contemplating homeownership and are in a position to proceed, now might be an opportune time to act. The consistent forecast of rising home values suggests that investing in a property could yield favorable returns. To embark on this journey, consider enlisting the guidance of a local real estate agent who can assist you in finding your ideal home.


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