Why Buying a Home Is a Sound Decision
If you're considering purchasing a property, you want to be sure that your decision will be the ideal one. And for many people, that entails considering the future trajectory of property prices and how it can affect your investment.
We are not witnessing a dramatic decrease in housing prices this year. But as the year progresses, some markets' values can rise while those in other markets might fall. Because of this, keeping the big picture in mind is beneficial. In the years that follow, experts predict a return to a steadier rate of price appreciation.
Home Price Appreciation in the Years Ahead
In their most recent quarterly House Price Anticipation Survey, Pulsenomics surveyed more than 100 economists, financial strategists, and Home Price Expectation Survey (HPES). The expectation for property prices over the next five years is stated in the report. According to the graph below, following a little drop this year, these experts anticipate that home prices will resume appreciating at more typical rates until 2027.
The primary point is that even while certain cities will experience home price gain and others may experience depreciation, analysts aren't predicting a significant decline in home prices overall. Further in the future, they observe a long-term trend of consistent price growth. That is a prime illustration of how homeownership ultimately triumphs.
What Does This Mean for You?
After you purchase a property, price growth increases the worth of your home, which increases your household's wealth. Using the professional price appreciation estimates from the poll described above, the following is how the value of a typical property could change over the following several years (see graph below):
In this illustration, if you invested in a $400,000 home at the start of the year and took the HPES estimate into account, you could amass nearly $54,000 in household wealth over the following five years. Thus, if you're debating whether purchasing a home is a wise move, consider what a powerful tool it will be for growing wealth in the long run.
Bottom Line
The experts predict that even though property prices may slightly decline this year, they will increase during the following five years. If you're prepared to buy a home, keep in mind that buying now can position you for success down the road as home values (and your own net worth) are expected to rise. Let's get in touch to start the home-buying process right away.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.