That’s a question a lot of people are asking right now. The answer? Well, it depends on your situation, but here’s something important to keep in mind as you make your decision: The moment you buy, you start building equity. And you might be surprised at how quickly that can add up even with more modest home price growth.
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
