Many consumers are wondering what will happen with home values over the next few years. Some are concerned that the recent run-up in home prices will lead to a situation similar to the housing crash 15 years ago.
However, experts say the market is totally different today. They believe that price appreciation needs to slow, but continued price growth is supported by market fundamentals: limited supply, lower rates, and demographic demand. Because credit quality is better, debt to income is lower, and equity is plentiful, a crash in prices is believed to be unlikely.
While price appreciation will slow from the double-digit levels the market has seen over the last two years, experts believe home values will not depreciate.
A recent survey of over 100 economists, real estate experts, and investment and market strategists suggests home prices will continue appreciating over the next
five years.
Those responding to the survey believe home price appreciation will still be relatively high this year and then return to more normal levels over the next four years.
What Does This Mean For You As A Buyer?
With a limited supply of homes available for sale, and both prices and mortgage rates increasing, it can be a challenging market to navigate as a buyer. Buying a home sooner rather than later does have its benefits. If you wait to buy, you’ll pay more in the future.
If you buy now, you’ll be in the position to make future value increases work for you. Rising home prices will help build your home’s value and your own household wealth through home equity.
Bottom Line
If you’re trying to decide whether to buy now or wait, the key is knowing what’s expected to happen with home prices. If you want to get started, connect with me today.
Source: keepingcurrentmatters.com