If you have been considering buying a home, now might be the perfect time. I came across an interesting graphic from Keeping Current Matters recently. Keeping Matters Current a site that provides expert market insight into current real estate matters. With their graphic, they published that the most recent Home Price Expectation Survey for the third quarter has concluded that home equity will rise an estimated 31.8% over the next five years. Let’s discuss what that all means.
What is the Home Price Expectation Survey?
First, the Home Price Expectation Survey is conducted by collecting data from over 100 economist, real estate experts, investment and market strategist. It is released each quarter by a company called Pulsenomics in conjunction with Zillow. The survey’s sole purpose is to gain insight into the five-year expectation for future home prices/equity in the United States. The data is used by companies, consumers, and policy makers to stimulate constructive debate and make decisions on purchasing behavior, policy, and risk-management. An example of this is Bank of America. They use this quarterly research to help create their internal housing projection which affects how they lend money for mortgages.
What do these numbers mean for you?
The example Keeping Matters Current uses in the above graphic is a home costing $350,000 purchased in January of 2021. Based on the survey, the potential cumulative growth in equity of the next five years for a $350,000 home will be 31.8%. That’s $111,285.00 when looking at dollar figures. And, when equity in your home increases, so does your wealth. For this reason, 2021 could be a good year to purchase a home. Waiting to buy could also costs you more money. This is welcoming news after many of us felt we were being subjected to high prices this past year. Also, many faced concerns over appraisal gaps. If the survey holds true, many will be seeing a decent amount of added value to their home. And it’s happening in just five years.
If you want to purchase a home this year, let’s connect so you have an ally to help you navigate the process. Our Moving to Orlando REALTORS are here to help you prepare for your home purchase. Take a moment to fill out our contact form, and someone will be in contact with you!