Considering buying a home? You might be thinking: is now the right time to buy or should I wait it out? The decision is all yours, but here's some info to guide you in making your choice.

What’s Next for Home Prices?

Each quarter, Fannie Mae and Pulsenomics release the findings of the Home Price Expectations Survey (HPES). They basically check in with over 100 experts - you know, economists, real estate pros, and investment and market strategists - to get their take on where they see home prices heading.

In the most recent survey, experts are predicting that home prices will continue to rise for the next five years. Take a look at the graph below for more details.

It's like this - that sea of green on the chart? It basically screams, "Prices are staying put or going up!" They're forecasting a modest 3-4% increase annually.

Even though home prices won't rise as steeply in 2025 compared to 2024, remember that these gradual increases can significantly accumulate over time. Here’s the breakdown: If the experts are correct, and your home's value increases by 3.78% this year, anticipate another 3.36% growth the following year. And it's forecasted to rise by another 3.87% the year after that.

What Does This Mean for You?

When you hear that prices are expected to continue rising, it's actually a positive sign for your decision to buy a home. It indicates that your home is an investment that is likely to increase in value over the coming years.

If you're still not sure, let's take a look at some numbers that might change your mind. These figures illustrate the potential fluctuations in the value of a standard home in the coming years, based on projections by the HPES. Have a peek at the graph:

So, let's say you purchased a house for $400,000 back in January. With these forecasts, it looks like you might increase your household wealth by more than $83,000 in the next five years as your home's value goes up.

Waiting might seem like an option, but delaying your home purchase will likely result in spending more money.

Bottom Line

If you're feeling like it's about time to have a place of your own, and you're all set and capable to make it happen, buying a home now could be a smart move. The value of your home is likely to continue to rise as prices increase. Why don't we work together to begin searching for your next home today?