Despite the abundant data indicating a rise in home prices across the country, there remains a notable concern among some that another price crash is imminent. In fact, a recent survey by Fannie Mae reveals that 23% of consumers anticipate a decline in prices over the next 12 months – perhaps you share this concern.

To alleviate these worries, let's delve into what the experts predict for home prices, not just in the coming year but over the next five years.

Continuous Appreciation According to Experts While a few expert opinions may not completely dispel your concerns, a broader consensus among experts might provide reassurance. Enter the Home Price Expectation Survey (HPES) from Pulsenomics, a valuable resource reflecting the forecasts of over 100 economists, investment strategists, and housing market analysts. The latest quarterly release indicates a consistent projection of rising home prices each year through 2027 (refer to the graph below):

While the anticipated increase in 2024 may not match that of 2023, it's crucial to remember that home price appreciation is cumulative. In simpler terms, if these experts are correct and your home's value rises by 3.32% this year, it is projected to increase by an additional 2.17% the following year.

For those concerned about a potential decline in home prices, here's the key takeaway: Despite local variations, experts foresee a continued upward trajectory in home prices nationwide for the foreseeable future, aligning with a more standard market pace.

What Does This Mean for You? If you're still on the fence, consider these numerical projections that illustrate how the value of a typical home could evolve in the coming years based on expert predictions. Take a look at the graph below:

As an example, let's assume you purchased a $1,000,000 home at the beginning of this year. Factoring in the forecast for Conejo Valley, you could potentially accumulate over $131,127 in household wealth over the next five years.

In Conclusion

If you find yourself worrying about a potential decline in home prices, take solace in the consensus among experts – nationally, home prices are expected to not only continue their ascent next year but for several years ahead. If you have any questions or concerns regarding the future of home prices in our local area, feel free to reach out. Let's connect and address any uncertainties you may have.