(Article last updated: September, 2023)

If you're planning to buy a home, one thing to consider is what experts project home prices will do in the future and how that might affect your investment. Home prices, especially in the Jersey shore area, have fared far better than expected, and are also rising across the country. Data shows, and experts forecast home prices will keep appreciating.

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Experts Project Ongoing Appreciation

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Over 100 economists, investment strategists, and housing market analysts were recently polled in the latest quarterly Home Price Expectation Survey (HPES) and those experts forecast that home prices will continue to go up every year through 2027. Even though home prices vary by local market, experts project prices will continue to rise across the country for years to come. These numbers indicate the return to more normal home price appreciation, and while the projected increase in 2024 isn’t as large as 2023, it’s important to recognize home price appreciation is cumulative. In other words, if these experts are correct, after your home’s value rises by 3.32% this year, it’ll appreciate by another 2.17% next year. This is a good example of why owning a home is a choice that wins big over time.

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What Does This Mean for You?

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Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. To see how a typical home's value could change in the next few years using the expert projections from the HPES, check out the graph below:

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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.

So, if you're thinking about whether buying a home is a good choice, remember how it can be a powerful way to grow your wealth in the long run. 

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According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Please reach out to learn more about today’s ever-evolving real estate market in our area, and I hope you are making the most of

"Locals’ summer" here at the Jersey shore.

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