December 4, 2023

Addressing concerns about potential home price declines is crucial, especially with 23% of consumers expressing worries about a market crash in the next 12 months. In this blog post, we explore insights from a comprehensive expert survey to shed light on the trajectory of home prices over the next five years.

Consensus Among Experts: Continuous Home Price Appreciation

Despite prevailing worries, data indicates a consistent upward trend in home prices nationwide. The Home Price Expectation Survey (HPES) from Pulsenomics, comprising insights from 100+ economists, investment strategists, and housing market analysts, highlights positive forecasts for the next five years. The graph below illustrates the projected growth:

Cumulative Appreciation 

While the projected increase for 2024 may be slightly lower than 2023, it’s essential to understand that home price appreciation is cumulative. If a home’s value rises by 3.32% this year, it is expected to increase by an additional 2.17% the following year.

Implications for Homeowners: Building Household Wealth Over Time

Addressing concerns directly, let’s break down what this means for you as a homeowner. Utilizing HPES projections, consider the potential impact on a $400,000 home purchased this year. The graph below illustrates how household wealth could accumulate over the next five years:

Wealth Accumulation Scenario 

If you bought a $400,000 home at the beginning of this year, the forecast suggests the potential to accumulate over $71,000 in household wealth over the next five years.

Rest assured, if you’re apprehensive about the possibility of declining home prices, expert consensus indicates the opposite. Nationally, home prices are projected to ascend not just next year, but for the foreseeable future. 

Should you have any questions or concerns regarding local market dynamics, don’t hesitate to connect with us for personalized insights into your local housing market. Your peace of mind is our priority.