Experts Reveal: Will Home Prices Skyrocket or Plummet in the Next 5 Years?

Experts Reveal: Will Home Prices Skyrocket or Plummet in the Next 5 Years?

If you’re thinking of making a move this year, there are two housing market factors likely on your mind: home prices and mortgage rates.

You might be wondering what’s going to happen next and whether it’s better to move now or wait it out. The best approach is to make an informed decision based on the latest information available. Here’s what experts are saying about both prices and rates.

What’s Next for Home Prices?

One reliable source for home price forecasts is the Home Price Expectations Survey from Fannie Mae. This survey gathers insights from over one hundred economists, real estate experts, and investment strategists. According to the most recent release, experts project that home prices will continue to rise at least through 2028.

While the rate of appreciation varies year-to-year, the survey suggests a steady increase in home prices over the next five years, albeit at a more normal pace.

This means if you buy now, your home will likely grow in value, allowing you to gain equity in the coming years. Conversely, waiting to purchase could mean paying a higher price later on as home prices continue to climb.

When Will Mortgage Rates Come Down?

This is the million-dollar question in the industry, and there’s no simple answer. Numerous factors contribute to the current volatile mortgage rate environment. Monthly inflation and labor data significantly influence mortgage rates.

Ongoing inflation deceleration, a slowing economy, and geopolitical uncertainties could lead to lower mortgage rates. Conversely, data indicating inflation risks may result in higher rates.

Experts are optimistic that rates might come down later this year, but housing market predictions frequently change in response to new economic data and geopolitical events.

If you’re ready, willing, and able to afford a home right now, partnering with a trusted real estate advisor and mortgage professional can help you weigh your options and make the best decision. Contact us to get personalized answers for your goals.

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