The topic of home prices has been the subject of much debate over the past year. While some have predicted a significant drop in prices, akin to the housing crisis of 2008, this has yet to materialize. Others have suggested that the real estate market may experience slight appreciation or depreciation, depending on the region of the country. As we approach the spring real estate market, industry experts are continuing to make projections about what will happen with home prices both in the near future and beyond.
According to Selma Hepp, the Chief Economist at CoreLogic, recent mortgage rate volatility has created a level of uncertainty in the market, but the continued shortage of available homes for sale is likely to keep price declines modest. Hepp projects that price declines will peak at around 3% peak to trough in the coming years.
Pulsenomics, a research firm, regularly surveys a panel of over 100 economists, investment strategists, and housing market analysts to gauge their five-year predictions for future home prices in the United States. Their most recent survey revealed that the experts generally anticipate slight price depreciation in the housing market in the near future, followed by steady appreciation over time.
Given the information available and what industry experts are saying about home prices, you may be wondering whether it’s a good idea to buy a home this spring. Here are three reasons why you should consider making a move:
- Buying a home can help you escape the cycle of rising rents. Median rent prices have been on the rise for decades, so purchasing a home can offer a more stable housing payment.
- Homeownership can serve as a hedge against inflation. When you buy a home with a fixed-rate mortgage, you can lock in your housing payment and avoid the risk of rising rental costs.
- Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is significantly higher than that of a renter, highlighting the long-term financial benefits of owning a home.
Ultimately, the decision to purchase a home should be made with all of the facts in mind and with the help of an industry expert who can guide you through the process.
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