Does It Make Sense To Buy a Home Right Now?

If you're contemplating buying a home, you're likely faced with the age-old question: should I buy now or wait? While the decision is ultimately yours, here's some key information to help guide your choice.

What's on the Horizon for Home Prices?

Every quarter, Fannie Mae and Pulsenomics release the Home Price Expectations Survey (HPES), which gathers insights from over 100 experts, including economists, real estate professionals, and market strategists, about their predictions for home prices.

According to the latest survey, the consensus is that home prices will continue to rise over the next five years. The graph below illustrates this upward trend, with experts projecting a steady increase of 3-4% annually.

While the rate of growth might taper slightly in 2025 compared to 2024, these incremental increases can accumulate significantly over time. For example, if your home's value increases by 3.78% this year, it could grow by an additional 3.36% next year, and another 3.87% the following year.

Implications for Prospective Homebuyers

The forecasted rise in home prices should be encouraging if you're considering purchasing a home. It suggests that a home is not just a place to live, but also an asset poised to appreciate in value over the coming years.

To put this into perspective, let's examine a hypothetical scenario. Suppose you buy a home for $400,000 at the beginning of this year. Based on the expert projections from the HPES, you could potentially gain over $83,000 in household wealth over the next five years as your home appreciates in value.

Of course, delaying your purchase is an option, but it's important to note that waiting could result in higher costs as home prices continue to climb.

Final Thoughts:

If you're ready to take the leap into homeownership and have the means to do so, buying now might be a wise decision. With home prices expected to rise, your investment could grow in value over time. Let's work together to find your dream home and start building your future wealth today.

 

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