Predictions for Future Home Prices: What Experts Foresee Over the Next 5 Years

Lisa Mailhot  |  September 12, 2023


Predictions for Future Home Prices: What Experts Foresee Over the Next 5 Years


If you're considering the purchase of a home, it's essential to consider the projections made by experts regarding future home prices and how these forecasts could impact your investment. Despite adverse reports on home prices in the past year, they have shown surprising resilience and are on an upward trajectory nationwide. Data substantiates that experts anticipate a continued increase in home prices.

Anticipated Ongoing Appreciation by Experts

In the most recent quarterly Home Price Expectation Survey (HPES), Pulsenomics conducted a survey involving over 100 economists, investment strategists, and housing market analysts to gauge their predictions concerning home prices in the upcoming five years. The survey results shed light on the expectations of these experts regarding home price trends. Their collective insight paints a picture of annual price appreciation through 2027, as illustrated in the graph below.

For those who might have harbored concerns about declining home prices based on online stories, the key takeaway here is that despite variations in local markets, experts envision a sustained upward trajectory for home prices across the nation in the coming years. These projections signify a return to more typical levels of home price appreciation. 

Moreover, while the projected increase for 2024 may not be as substantial as in 2023, it's essential to recognize that home price appreciation is a cumulative process. In simpler terms, if these experts' assessments hold true, your home's value, which increases by 3.32% this year, will continue to appreciate by another 2.17% in the subsequent year. This serves as a compelling illustration of why homeownership proves to be a winning choice in the long term.

Implications for You

Once you've made the decision to purchase a home, price appreciation will elevate the value of your property, thereby enhancing your household's wealth. To gain insight into how the value of an average home may evolve in the next few years, you can refer to the graph below, which employs the expert projections from the HPES. 


As an illustration, let's assume you acquired a $400,000 home at the beginning of this year. By factoring in the HPES forecast, you could potentially witness an accumulation of over $71,000 in household wealth over the next five years.

Hence, if you're contemplating the merits of homeownership, it's vital to remember its potential as a robust means of growing your wealth over an extended period.

Bottom Line

As per the assessments made by industry experts, the forthcoming five years are expected to witness a more conventional pace of growth in home prices. If you are prepared to embark on the journey of homeownership, it's worthwhile to note that taking that step today could position you for long-term success, with the promise of increasing home values and a subsequent boost in your net worth. Feel free to reach out to us to commence the homebuying process today.

Recent Blog Posts

Stay up to date on the latest real estate trends.


Converted Churches, Barns, and Factories: Unconventional Home Conversions

Lisa Mailhot  |  November 30, 2023

Experience Unique Living: Converted Churches, Barns, and Factories Turned Homes. Discover the charm of unconventional conversions with history, character, and modern c… Read more


Unveiling the Hidden Gems of Orange County: 10 Intriguing Trivia Facts

Lisa Mailhot  |  November 28, 2023

Delve into the secrets of Orange County, California, with our blog featuring captivating trivia facts. Whether you're a potential buyer, seller, or a curious tourist, … Read more


Orange County Real Estate in 2023: Market Trends and Insights

Lisa Mailhot  |  November 27, 2023

Uncover 2023 Orange County Housing Market Trends: Delve into median sold prices, sales metrics, and market dynamics to understand if it's a buyer's or seller's market.… Read more


Last-Minute Gifts for the Home: Thoughtful Ideas for Stress-Free Holiday Giving

Lisa Mailhot  |  November 22, 2023

Stuck in a last-minute gift scramble? Discover seven low-stress, last-minute gift ideas that'll delight your loved ones and elevate their home experience. From cozy th… Read more


Unlocking Opportunities: Lower Mortgage Rejection Rates Point to a Brighter Real Estate Horizon

Lisa Mailhot  |  November 21, 2023

Explore the changing real estate landscape influenced by declining mortgage rejection rates. Discover the opportune moment for buying or selling your home while improv… Read more


Dealing with Problematic Neighbors When Selling Your Home

Lisa Mailhot  |  November 20, 2023

 Selling your home with challenging neighbors? Learn how to handle noisy, disrespectful, or problematic neighbors effectively. Follow these tips to ease the selling pr… Read more


Orange County Real Estate Trends: November 2023 Market Insights

Lisa Mailhot  |  November 16, 2023

Get the latest insights into the Orange County real estate market. Discover trends, notable closings, and the impact of the holiday season on inventory. Stay informed … Read more


FHFA Sets 2024 Multifamily Loan Purchase Caps: What Realtors Need to Know

Lisa Mailhot  |  November 15, 2023

Stay informed on FHFA's 2024 multifamily loan purchase caps, totaling $140 billion for Fannie Mae and Freddie Mac. Explore the impact on the multifamily market and its… Read more


Navigating Today's Housing Market: The Rise of 'Nepo-Homebuyers

Lisa Mailhot  |  November 14, 2023

Learn about the rise of alternative lenders, such as parents, as a solution to the affordability challenge in today's real estate market. Explore available options for… Read more

Let’s Talk

You’ve got questions and we can’t wait to answer them.