If you’ve been thinking about buying a home, there’s one question that you’re no doubt asking yourself: should I buy right now, or should I wait? While no one can answer that question for you, here’s some information that could help you make your decision.
The Future of Home Price Appreciation
Each quarter, Pulsenomics surveys a national panel of over 100 economists, real estate experts, and investment and market strategists to compile 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 continue appreciating over the next five years (see graph below):
As the graph shows, the rate of appreciation will moderate over the next few years as the market shifts away from the unsustainable pace it saw during the pandemic. After this year, experts project home price appreciation will continue, but at levels that are more typical for the market.
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 a more normal price appreciation of 4-5% a year.”
For you, ongoing appreciation should give you peace of mind that your investment in homeownership is worthwhile, because you’re buying an asset that’s projected to grow in value in the years ahead.
What Does That Mean for You?
To give you an idea of how this could impact your net worth, here’s how a typical home could grow in value over the next few years using the expert price appreciation projections from the Pulsenomics survey mentioned above (see graph below):
As the graph conveys, even at a more typical pace of appreciation, you still stand to make significant equity gains as your home grows in value. That’s what’s at stake if you delay your plans.
As of June 20, the median sales price for a single family home on Cape Cod is $694,250.00. While that is certainly higher than just a few years ago, it’s still less than Boston ($800,000) and many surrounding communities. Plus, the Cape also offers much more in terms of quality school systems, recreational and outdoor activities, etc.
So, if you’re ready to become a homeowner, know that buying today can set you up for long-term success as your home’s value (and your own net worth) is projected to grow with ongoing price appreciation.
Let’s connect at 508-360-5664 and firstname.lastname@example.org to discuss your options. We’re happy to answer your questons.
…and remember last month we sold our home of 28 years and downsized to an area that we had been thinking about for years.
Stay safe this week and please keep an eye on the kids and adults, who are not familiar with the water. Thanks…
Mari and Hank