Contemplating a home purchase? The decision to buy now or wait hinges on various factors, but S&D Real Estate offers expert insights to help guide your choice.

What Lies Ahead for Home Prices?

Each quarter, Fannie Mae and Pulsenomics publish the results of the Home Price Expectations Survey (HPES). It asks more than 100 experts—economists, real estate professionals, and investment and market strategists—what they think will happen with home prices.

The graph below illustrates this consensus, depicting a projected upward trajectory in home prices without any anticipated declines. The forecast suggests a steady annual increase of 3-4%, underlining the positive outlook for homeownership.

While the rate of appreciation may taper slightly in 2025 compared to 2024, it's crucial to recognize the cumulative effect of these incremental gains over time. For instance, if your home appreciates by 3.78% this year, the subsequent years could see further appreciation, compounding the growth potential.

Implications for Buyers

The prospect of sustained price appreciation should instill confidence in prospective homebuyers. Investing in a home now implies acquiring an appreciating asset poised for growth in the foreseeable future.

For those still on the fence, consider the following scenario depicted in the graph below. Suppose you purchase a home valued at $400,000 at the beginning of the year. Based on expert projections from the HPES, your home's value could appreciate by over $83,000 over the next five years, contributing significantly to household wealth accumulation.

Delaying the decision to buy may seem appealing, but it comes at a cost. With prices on an upward trajectory, postponement only translates to a higher price tag for future home purchases.

In Conclusion

For individuals contemplating homeownership and equipped with the means to proceed, the current market presents a compelling opportunity. The consensus among experts suggests that purchasing now could yield long-term financial benefits, as home values are expected to appreciate steadily. Let S&D Real Estate be your partner in navigating the journey to homeownership—let's begin the search for your dream home today.