Categories: Property Management

Why Buying a Home Is a Sound Decision

If you’re thinking about buying a home, you want to know the decision will be a good one. And for many, that means thinking about what home prices are projected to do in the coming years and how that could impact your investment.

This year, we aren’t seeing home prices fall dramatically. As the year goes on, however, some markets may go up in value while others may lose value. That’s why it’s helpful to keep the long-term view in mind. Experts project a return to a steadier rate of price appreciation in the years that follow.

Home Price Appreciation in the Years Ahead

Over 100 economists, investment strategists, and housing market analysts were polled by Pulsenomics in their latest quarterly Home Price Expectation Survey (HPES). The report indicates what they believe will happen with home prices over the next five years. As the graph below shows, after mild depreciation this year, these experts forecast home prices will return to more normal levels of appreciation through 2027.

The big takeaway is experts aren’t forecasting a drastic fall in home prices nationally, even though some markets will see home price appreciation while others may depreciate. And when they look further out, they see steady price appreciation in the long run. That’s a great example of why homeownership wins over time.

What Does This Mean for You?

Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. Here’s how a typical home’s value could change over the next few years using the expert price appreciation projections from the survey mentioned above (see graph below):

In this example, if you bought a $400,000 home at the beginning of this year and factor in the forecast from the HPES, you could accumulate over $54,000 in household wealth over the next five years. So, if you’re wondering if buying a home is a sound decision, keep in mind what a strong wealth-building tool it is long term.

CMC

Recent Posts

The Benefits of Offering Eco-Friendly Rental Units in Southern California

Going green in rental properties used to be like adding a cherry on top—a nice…

6 days ago

How to Facilitate a Smooth Tenant Move-Out Process

As a landlord, handling tenant turnover efficiently is essential. Sooner or later every tenancy will…

1 week ago

Top Renovations That Attract Tenants in a Competitive Market

If you want your Long Beach rental property to stand out, you must make it…

3 weeks ago

How to Prepare Your Property for Renting

Renting out a property can be a lucrative venture, providing a steady income stream and…

3 weeks ago

Boost Your Real Estate Business with These Digital Marketing Strategies

Digital marketing has turned upside down industries across the world, and the estate is no…

1 month ago

Renter-Friendly Home Upgrades: A Complete Checklist

There are unique challenges with renting a home, but that does not mean one can't…

1 month ago