As soon as you purchase a home, you start building equity, and you might be surprised at how quickly that can accumulate, even with moderate price appreciation. Let’s take a closer look at how this works.
Home Price Projections: A Look at the Future
Every quarter, Fannie Mae releases the Home Price Expectations Survey (HPES), which gathers insights from over 100 economists, real estate experts, and market strategists. The latest survey shows that home prices are expected to continue rising nationally through at least 2028. Here’s a snapshot of the forecast:
While price increases will vary across different local markets, the takeaway is that home values are projected to increase every year. The rate of growth might fluctuate, but the trend is clear—home prices are going up.
What Does This Mean for You?
If you’re considering buying a home, rising prices may seem like a disadvantage. However, once you own your home, those price increases can translate into significant gains in your wealth.
Let’s break it down: If you bought a $450,000 home at the beginning of 2024, based on projected price appreciation from HPES, you could accumulate more than $90,000 in household wealth over the next five years. Here’s a visual representation of what you stand to gain:
Is Now the Time to Buy?
If building wealth is one of your financial goals, now could be an ideal time to buy. And with mortgage rates having recently dropped, you might find even more reasons to consider making a move.
The Importance of Working with a Pro
To navigate today’s housing market, it’s essential to have the support of an experienced real estate agent. The Mortgage Reports stresses the importance of staying informed:
“Given the intricacies of the current market, it’s more important than ever to stay informed and up to date about housing market conditions. Whether you’re looking to buy or sell in the remaining months of 2024, having a professional guide you through the process can make all the difference.”
Conclusion
Deciding whether to buy now or wait is a personal decision, but it’s clear that the potential for wealth growth through home equity is significant. With the forecasted increase in home prices, buying a home could provide an opportunity to build lasting wealth. If you're considering a move, working with an expert can help you understand the market and make a well-informed decision.
Take the Next Step
If you're ready to explore your home-buying options, let us guide you through the process. Whether you want to assess your potential equity growth or find the perfect home in your local market, we're here to help. Contact us today to get started and secure your financial future through homeownership.
