Despite consistent home-value appreciation in the Pikes Peak region, we still get a lot of questions from clients who worry there will be another price crash in the immediate future.
The aren’t alone. A recent study from Fannie Mae shows that 23 percent of consumers think prices will fall over the next 12 months. That’s nearly one in four people who are dealing with that fear – maybe you’re one of them.
While none of us have a crystal ball, many experts are bullish about home prices continuing to increase in the next 5 years.
The Home Price Expectation Study(HPES) from Pulsenomics is a great resource to show what experts forecast for home prices over a five-year period. It includes projections from over 100 economists, investment strategists, and housing market analysts. And the results from the latest quarterly release show home prices are expected to go up every year through 2027 (see graph below):
What Does This Mean for You?
If you’re not convinced yet, maybe these numbers will get your attention. They show how a typical home’s value could change over the next few years using the expert projections from the HPES. Check out the graph below:
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 equity over the next five years.
0 Comments