Thinking aboutbuying a home? If so, youre probably wondering:should I buy now or wait?Nobody can make that decision for you, but heres some information that can help you decide.
Whats Next for Home Prices?
Each quarter,Fannie Mae andPulsenomicspublish the results of theHome Price Expectations Survey(HPES). It asks more than 100 expertseconomists, real estate professionals, and investment and market strategistswhat they think will happen withhome prices.
In thelatest survey, those experts say home prices are going to keep going up for the next five years (see graph below):
Heres what all the green on this chart should tell you. Theyre not expecting any price declines. Instead, theyre saying well see a 3-4% riseeach year.
And even though home prices arent expected to climb by as much in 2025 as they are 2024, keep in mind these increases can really add up over time. It works like this. If these experts are right and your homes value goes up by 3.78% this year, its 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 aboutbuying a home. Thats because it means your home is an asset thats projected to grow in value in the years ahead.
If youre not convinced yet, maybe these numbers will get your attention. They show how a typical homes value could change over the next few years using expert projections from theHPES. Check out the graph below:
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 but if you do, buying a home is just going to end up costing you more.
Bottom Line
If you're thinking it's time to get your own place, and youre ready and able to do so, buying now might make sense. Your home is expected to keep getting more valuable aspricesgo up. Teaming up with me, Marie McLaughlin, a localreal estate agentis a good first step to start looking for your next home today. Please call me at 727-858-7569.
Source:https://www.keepingcurrentmatters.com/2024/03/20/does-it-make-sense-to-buy-a-home-right-now/
