Although the anticipated surge in 2024 may not match the scale of 2023, it's essential to recognize that home price appreciation is cumulative. In simpler terms, if the experts' projections hold true and your home's value increases by 3.32% this year, it is expected to further rise by 2.17% in the subsequent year.
For those concerned about the possibility of declining home prices, the key insight is this: despite regional variations, experts forecast a sustained upward trajectory across the country for the foreseeable future, aligning with a market pace that is considered more normal.
What Does This Mean for You?
If you remain unconvinced, perhaps these figures will capture your interest. They illustrate the potential evolution of a typical home's value in the coming years based on expert forecasts from the HPES. Refer to the graph below for a visual representation.
In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in household wealth over the next five years.
For those who harbor concerns about a potential decline in home prices, take comfort in the consensus among numerous experts indicating quite the opposite. Nationally, the consensus is that home prices will not only persistently climb in the upcoming year but for several years ahead. Should you have any inquiries or apprehensions regarding the trajectory of home prices in your local area, consider reaching out to a trusted real estate agent for guidance.