You know, even though there's all this data proving that home prices are on the rise in most parts of the country, there are still quite a few folks out there who are worried about a possible crash in the near future. Can you believe it? A new survey from Fannie Mae actually found that 23% of people think prices will drop over the next year. That's like one in four people dealing with this fear. Hey, maybe you're one of them too.

No need to worry, I've got some insights for you. Let me break it down for you in a casual chat. The experts have spilled the beans on what's in store for home prices, not just in the upcoming year but also over the course of the next five years. Stick with me, and we'll get you up to speed.

Experts Project Ongoing Appreciation

I totally get that a few expert opinions might not be enough to sway your thoughts. But hey, no worries! I've got you covered with a larger group of experts who can help put your mind at ease.

Have you heard of the Home Price Expectation Survey (HPES) from Pulsenomics? It's a really useful tool that shows what the experts are predicting for home prices over the next five years. They gather projections from more than 100 economists, investment strategists, and housing market analysts. The latest quarterly release of the survey revealed some exciting news: home prices are expected to increase every year until 2027!

Although the increase in 2024 won't be as big as this year, you gotta keep in mind that home price appreciation adds up over time. In other words, if these experts are right, and your home's value goes up by 3.32% this year, it should go up by another 2.17% next year. So, you'll still be making some solid gains.

If you're concerned that home prices might drop, here's the main thing you should know. While prices can differ depending on where you live, experts predict that home prices will keep going up all over the country at a more typical rate for the market, and this will likely continue for many years.

What Does This Mean for You?

If you're still on the fence, let me throw some numbers your way. Take a look at this graph below - it's based on the expert projections from the HPES. It shows how the value of a regular ol' home could change over the next few years. Maybe that'll catch your interest!

So, let's imagine you bought a house at the start of this year. It cost you around $400,000. Now, here's the interesting part - if we consider the predictions from the HPES (Home Price Expectation Survey), you might actually end up with more than $71,000 in wealth for your home over the next five years. Pretty exciting, right?

Bottom Line

If you're stressing about home prices dropping, don't worry! Many experts are actually saying the exact opposite. They're predicting that home prices will keep rising not only next year, but for years after that. So, if you have any questions or concerns about the future of home prices in our local area, let's chat.