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Each quarter, Fannie Mae releases the Home Price Expectations Survey, which asks over a hundred experts economists, real estate professionals, and market strategists what they predict for home prices over the next five years. Their latest forecast shows that prices are expected to keep rising through at least 2028 (see the graph below):

While home prices will vary depending on where you live, this shows that, on a national level, they’re projected to go up every year. The increase might not be as dramatic as it’s been in the past, but the key takeaway here is that they’re still going up, just at a more moderate pace.

Now, while rising prices might seem frustrating, once you own a home, that growth works in your favor. To put it in perspective, here’s a look at how much equity you could gain if you buy now. Using the forecast from the HPES and a typical home’s value, you can see the potential wealth you could build:

For example, if you bought a $450,000 home at the start of this year, based on expert predictions, you could build more than $90,000 in equity over the next five years. That’s a huge boost to your household wealth!

So, if you’re ready and able to buy, and building long-term wealth matters to you, this could be an opportunity worth considering. Now that mortgage rates have come down a bit, it might be the right time to make a move.

If you’re unsure about what’s best for your situation, we’re here to help! Reach out to schedule a complimentary buyer consultation, and we can talk through your options and what makes sense for you in today’s market.

BY KCM CREW | SEPTEMBER 25, 2024

As a buyer, you might be concerned about overpaying, and if you’re thinking about selling, you could be worried about not getting the price you’re aiming for.

Here’s a simple breakdown to help make sense of the current housing market and give you a clearer picture of what’s really happening with prices—whether you’re thinking of buying or selling.

Home Price Growth Is Slowing, but Prices Aren’t Dropping Nationwide

Across the country, home prices are still rising, but the pace of that growth is starting to slow down. In other words, while prices aren’t increasing as quickly as they did in the past few years, they’re still going up. The data from Case-Shiller makes the shift from 2023 to 2024 pretty clear:

But don’t worry—just because you’re hearing about a “cooling” market doesn’t mean home prices are dropping. In fact, all the data shows continued growth, just not at the breakneck speed we saw when prices were skyrocketing a few years ago.

What’s Next for Home Prices? It’s All About Supply and Demand

If you’re wondering where prices might go from here, it really comes down to supply and demand—and that’s going to vary based on where you live.

Nationally, the number of homes for sale is slowly increasing, but there still aren’t enough to meet the demand from buyers. That’s keeping prices elevated, though the increase has slowed down. As Danielle Hale, Chief Economist at Realtor.com, puts it:

“Today’s low but quickly improving for-sale inventory has ushered in more market balance than would otherwise be expected. This should help home prices maintain a slower pace of growth.”

Here’s another factor to keep in mind: Experts expect mortgage rates to continue declining, which could bring more buyers back into the market in the coming months. If that happens and demand increases, prices could tick up again.

We’re Here to Help Answer Your Questions

While national trends give a big-picture view, real estate is always about your local market. What’s happening in your neighborhood could be totally different depending on the supply and demand in your area.

If you’re thinking of buying or selling, or just curious about what your home might be worth, we’re here to help! Reach out to schedule a complimentary buyer consultation, and we’ll guide you through the latest market trends to make sure you’re ready for your next step.

BY KCM CREW | SEPTEMBER 11, 2024