You want to make sure that your decision to buy a home is a good one. Many people think about how home prices will change in the next few years and how this could affect their investment. We aren’t expecting home prices to fall significantly this year. However, as the year progresses, certain markets may see their value rise while others may see their value decrease. It’s important to look at the long-term perspective. Experts predict a steady increase in price appreciation over the next few years. Pulsenomics’ latest quarterly Home Price Expectation Survey (HPES) surveyed more than 100 economists, investment strategists and housing market analysts. This report shows what experts believe will happen to home prices in the next five-years. The graph below shows that after a mild depreciation this past year, experts predict that home prices will recover to their normal levels of appreciation through 2027. However, some markets will see an increase in home prices while others will see a decrease. They see steady price appreciation over the long-term if they look further out. This is a great example of why homeownership pays off over time. Here’s how a typical house’s value will change over time using the price appreciation projections of the survey (see graph below). In this example, if a $400,000 home was purchased at the beginning this year, and you factor in the forecast from HPES, your household wealth could reach $54,000 over the next five-years. Bottom LineAccording to experts, although we may see some depreciation this year home prices are expected increase over the next five. If you are ready to buy a home, you can start the process today. Home values and your net worth are expected to increase. You can partner with a local agent to start the homebuying process. Click Here to learn about the newest feature of KCM, Personalized Posts.