What Do The Coming Years Hold For Home Prices?
You’ve probably heard about today’s rising home prices. This is great news for sellers, but might be concerning to buyers. Will prices continue to rise? Will they eventually settle? Will they start to fall? These are valid questions. Let’s talk about it.
In order to discuss this topic, let’s clarify three words. Appreciation means an increase in the value of a home, depreciation means a decrease in the value of a home, and deceleration is when something happens at a slower pace.
Home prices have appreciated for 114 months straight. Experts are predicting that we might see some deceleration over the coming months, but not depreciation.
Over the next few years, prices are expected to continue rising, but at a slower pace. So, what does this mean for you? The years ahead will likely hold a much more normal and average appreciation. There probably won’t be a sudden drop in home prices. If you’re waiting for that to happen, you might be waiting a long time.
If you’re a seller, home price appreciation is great news for the value of your home. If you’re a buyer, consider buying now, before home prices appreciate even more.