Home Appreciation Will Lower Back to Normal Levels

home appreciation levels to lower

If you’re in the market for a new house, do you wait or buy this year? While there are many ways to answer that question, here’s some good news. Home appreciation will lower back to normal levels.

Wait or Buy?

Each quarter, Pulsenomics surveys a national panel of over 100 experts. Ranging from economists to real estate experts and investment strategists , this survey compiles projections for the future of home price appreciation. The output is the Home Price Expectation Survey. In the latest release, it forecasts home prices will appreciate over the next five years (see graph below):

Should I Buy a Home Right Now? | Keeping Current Matters

As the graph shows, the rate of appreciation will lower over the next few years. The market will shift away from its current unsustainable pace. After this year, experts project home prices will appreciate in a way that’s typical for the market. 

Appreciation to Level Out

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: “People should not anticipate another double-digit price appreciation. Those days are over. We may return to more normal price appreciation of 4%, 5% a year.”

The ongoing appreciation should give you peace of mind your investment in homeownership is worthwhile.

Here’s an idea of how this could impact your net worth:

Should I Buy a Home Right Now? | Keeping Current Matters

As the graph conveys, even at a more typical pace of appreciation, you still stand to make significant equity gains. That’s what’s at stake if you delay your plans.

If you’re ready to become a homeowner, know that buying today can set you up for long-term success. Your asset’s value (and your own net worth) is projected to grow with the ongoing home price appreciation. Partner with the Ultimate Lending Team to begin your home buying process today.

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