Are you thinking about buying a home? If so, you’re probably wondering: Should I buy now or wait? Nobody can decide for you, but here’s some information to help you decide.
What’s Next for Home Prices?
Each quarter, Fannie Mae and Pulsenomics publish the Home Price Expectations Survey (HPES) results. It asks more than 100 experts—economists, real estate professionals, and investment and market strategists—what they think will happen with home prices.
In the latest survey, those experts say home prices are going to keep going up for the next five years (see graph below):
All the green on this chart should tell you they’re not expecting any price declines. Instead, they say we’ll see a 3-4% rise yearly.
Even though home prices aren’t expected to climb as much in 2025 as in 2024, keep in mind that these increases can add up over time. If these experts are right and your home’s value goes up by 3.78% this year, it’s set to grow another 3.36% next year and another 3.87% the year after.
What Does This Mean for You?
Knowing that prices are forecasted to increase should make you feel good about buying a home. That’s because it means your home is an asset projected to grow in value in the years ahead.
If you’re not convinced yet, these numbers may get your attention. They show how a typical home’s value could change over the next few years using expert projections from the HPES. Check out the graph below:
In this example, imagine you bought a home for $400,000 at the start of this year. Based on these projections, you could gain over $83,000 in household wealth over the next five years as your home grows in value.
Of course, you could also wait – but if you do, buying a home will just cost you more.
Bottom Line
If you think it’s time to get your place, and you’re ready and able to do so, buying now might make sense. Your home is expected to keep getting more valuable as prices go up. Let’s meet with real estate agents at KM Realty Group LLC, Chicago, Illinois, to start looking for your next home today.
