Leave a Message

Thank you for your message. We will be in touch with you shortly.

What Experts Project for Home Prices Over the Next 5 Years

What Experts Project for Home Prices Over the Next 5 Years

If you're planning to buy a home, one thing to consider is what experts project home prices will do in the future and how that might affect your investment. While you may have seen negative news over the past year about home prices, they’re doing far better than expected and are rising across the country. And data shows, experts forecast home prices will keep appreciating.

Experts Project Ongoing Appreciation

Pulsenomics polled over 100 economists, investment strategists, and housing market analysts in the latest quarterly Home Price Expectation Survey (HPES). The results show what the panelists project will happen with home prices over the next five years. Here are those expert forecasts saying home prices will go up every year through 2027 (see graph below):If you’re someone who was worried home prices would fall because of stories you’ve read online, here's the big takeaway. Even though home prices vary by local market, experts project prices will continue to rise across the country for years to come. And these numbers indicate the return to more normal home price appreciation.

And while the projected increase in 2024 isn’t as large as 2023, it’s important to recognize home price appreciation is cumulative. In other words, if these experts are correct, after your home’s value rises by 3.32% this year, it’ll appreciate by another 2.17% next year. This is a good example of why owning a home is a choice that wins big over time.

What Does This Mean for You?

Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. To see how a typical home's value could change in the next few years using the expert projections from the HPES, check out the graph below:In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in household wealth over the next five years.

So, if you're thinking about whether buying a home is a good choice, remember how it can be a powerful way to grow your wealth in the long run. 

Bottom Line

According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Let’s connect to start the homebuying process today.

Recent Blog Posts

Stay up to date on the latest real estate trends.

Headed Back Into the Office? You May Decide To Move

A growing number of companies are requiring employees to return to the office. And that’s leading some people to make decisions about where they live and if they need … Read more

SF Market Update - February 2025

Mortgage rates have ticked back up to roughly the same levels, as they were at prior to the Fed issuing its first rate cut in September.

East Bay Market Update - February 2025

Inventories are one of the most important leading indicators of price trends, and we’re seeing quite the increase in inventories in the East Bay in terms of both singl… Read more

The Perks of Buying a Fixer-Upper

If you’re willing to roll up your sleeves (or hire someone who will), buying a house that needs some work could open the door to homeownership.

3 Reasons To Buy a Home Before Spring

You might even be thinking, “Should I just wait until spring when more homes hit the market and rates might be lower?” But here’s the thing, no one knows for sure whe… Read more

SF Market Update - January 2025

The Federal Reserve’s interest rate cuts in 2024 provided some relief to some borrowers, but mortgage rates have remained stubbornly high. As of January 2, 2025, the a… Read more

East Bay Market Update - January 2025

The 2024 housing market looked progressively healthier with each passing month until Q4. The promising build in inventory during the first nine months of the year was … Read more

Expert Forecasts for the 2025 Housing Market

Experts are forecasting rates could settle in the mid-to-low 6% range by the end of the year.

San Francisco Market Update - December 2024

Elevated mortgage rates dominated the housing market in 2024, and 2025 may look similar if inflation starts to ramp up again.

Let’s Talk

You’ve got questions and we can’t wait to answer them.