If you’re looking to buy or sell a house, you’ve probably heard some chatter about the rising home prices in today’s market. And while this increase in home values is great news for sellers, you may be wondering what the real estate market will look like in the near future. Will prices fall or should you expect them to rise?
It’s important to note home prices have increased, or appreciated, for 114 straight months. But will that trend continue? Pulsenomics surveyed over 100 economists, investment strategists, and housing market analysts asking for their five-year projections. In terms of what lies ahead, experts say the market may see some slight deceleration, but not depreciation.
According to the experts, prices are expected to continue to rise, just not at the rate that we’ve seen over the last 12 months. According to the survey, more than 100 experts said that there was no expectation for price depreciation.
A recent article from realtor.com indicates you should expect:
. . . annual price increases will slow to a more normal level, . . .
Bill McBride, author of the blog Calculated Risk, also expects deceleration, but not depreciation:
My sense is the Case-Shiller National annual growth rate of 19.7% is probably close to a peak, and that year-over-year price increases will slow later this year.
Ivy Zelman of Zelman & Associates agrees, saying:
. . . home price appreciation is on the cusp of flipping to a decelerating trend.
What Does This Mean for You?
What experts are projecting for the years ahead is more in line with the historical norm for appreciation. The average annual appreciation from 1995-2020 is 4.1% and the expert forecasts are closer to that pace, which means you should see appreciation at a level that’s aligned with a more normal year.
If you’re a seller, the continued home price appreciation is good news for the value of your house. Connect with an agent to list your house for the right price.
If you’re a buyer, you should not expect a sudden drop in home prices. Instead, think about your homeownership goals and consider purchasing a home before prices rise further.
If you’re a seller, the continued home price appreciation is good news for the value of your house. Work with an agent to list your house for the right price based on market conditions.
Experts expect price deceleration, not price depreciation over the coming years. Connect with one of our agents today to talk through where things are headed, and what it means for you.