{"id":2132,"date":"2021-10-19T14:11:41","date_gmt":"2021-10-19T14:11:41","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=2132"},"modified":"2021-10-19T14:11:41","modified_gmt":"2021-10-19T14:11:41","slug":"future-hold-home-prices","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/future-hold-home-prices\/","title":{"rendered":"What Does the Future Hold for Home Prices?"},"content":{"rendered":"<div id=\"attachment_1797\" style=\"width: 760px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-1797\" decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-1797\" src=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2021\/06\/20210621-KCM-Share.jpeg\" alt=\"\" width=\"750\" height=\"410\" srcset=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2021\/06\/20210621-KCM-Share.jpeg 750w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2021\/06\/20210621-KCM-Share-300x164.jpeg 300w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><p id=\"caption-attachment-1797\" class=\"wp-caption-text\">What Does the Future Hold for Home Prices?<\/p><\/div>\n<p>If you\u2019re looking to buy or sell a house, chances are you\u2019ve heard talk about today\u2019s\u00a0<a title=\"rising home prices\" href=\"https:\/\/www.mykcm.com\/2021\/10\/06\/what-do-supply-and-demand-tell-us-about-todays-housing-market\/\">rising home prices<\/a>. And while this increase in home values is great news for sellers, you may be wondering what the future holds. Will prices continue to rise with time, or should you expect them to fall?<\/p>\n<p>To answer that question, let\u2019s first understand a few terms you may be hearing right now.<\/p>\n<ul>\n<li><a title=\"Appreciation\" href=\"https:\/\/www.merriam-webster.com\/dictionary\/appreciation\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Appreciation<\/strong><\/a>\u00a0is an\u00a0<em>increase<\/em>\u00a0in the value of an asset.<\/li>\n<li><a title=\"Depreciation\" href=\"https:\/\/www.merriam-webster.com\/dictionary\/depreciation\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Depreciation<\/strong><\/a>\u00a0is a\u00a0<em>decrease<\/em>\u00a0in the value of an asset.<\/li>\n<li><a title=\"Deceleration\" href=\"https:\/\/www.merriam-webster.com\/dictionary\/deceleration\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Deceleration<\/strong><\/a>\u00a0is when something happens at a\u00a0<em>slower pace<\/em>.<\/li>\n<\/ul>\n<p>It\u2019s important to note home prices have increased, or\u00a0<strong>appreciated<\/strong>, for\u00a0<a title=\"114\" href=\"https:\/\/www.nar.realtor\/newsroom\/existing-home-sales-recede-2-0-in-august\" target=\"_blank\" rel=\"noopener noreferrer\">114<\/a>\u00a0straight months. To find out if that trend may continue, look to the experts.\u00a0<a title=\"Pulsenomics\" href=\"https:\/\/pulsenomics.com\/surveys\/#home-price-expectations\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Pulsenomics<\/em><\/a>\u00a0surveyed over 100 economists, investment strategists, and housing market analysts asking for their five-year projections. In terms of what lies ahead, experts say the market may see some slight\u00a0<strong>deceleration<\/strong>, but not\u00a0<strong>depreciation<\/strong>.<\/p>\n<p>Here\u2019s the forecast for the next few years:<\/p>\n<div id=\"attachment_2133\" style=\"width: 1010px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-2133\" decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-2133\" src=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2021\/10\/kcm-infographic-1634649633.png\" alt=\"\" width=\"1000\" height=\"870\" srcset=\"https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2021\/10\/kcm-infographic-1634649633.png 1000w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2021\/10\/kcm-infographic-1634649633-300x261.png 300w, https:\/\/phphouses.com\/blog\/wp-content\/uploads\/2021\/10\/kcm-infographic-1634649633-768x668.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><p id=\"caption-attachment-2133\" class=\"wp-caption-text\">Estimate Home Prices Through 2025<\/p><\/div>\n<p>As the graph above shows, prices are expected to\u00a0<a title=\"continue to rise\" href=\"https:\/\/www.mykcm.com\/2021\/09\/09\/home-price-appreciation-is-skyrocketing-in-2021-what-about-2022\/\">continue to rise<\/a>, just not at the same pace we\u2019ve seen over the last year.\u00a0<strong>Over 100 experts agree, there is no expectation for price depreciation<\/strong>. As the arrows indicate, each number is an increase, which means prices will rise each year.<\/p>\n<p>Bill McBride, author of the blog\u00a0<a title=\"Calculated Risk\" href=\"https:\/\/www.calculatedriskblog.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Calculated Risk<\/em><\/a>, also expects\u00a0<strong>deceleration,\u00a0<\/strong>but not depreciation:<\/p>\n<blockquote><p><em>\u201cMy sense is the Case-Shiller National annual growth rate of 19.7% is probably close to a peak, and that\u00a0year-over-year\u00a0<strong>price increases\u00a0will slow\u00a0<\/strong>later this year.\u201d<\/em><\/p><\/blockquote>\n<p>Ivy Zelman of\u00a0<a title=\"Zelman &amp;amp; Associates\" href=\"https:\/\/www.zelmanassociates.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Zelman &amp; Associates<\/em><\/a>\u00a0agrees, saying:<\/p>\n<blockquote><p>\u201c. . . home price appreciation is on the cusp of flipping to a\u00a0<strong>decelerating<\/strong>\u00a0<strong>trend<\/strong>.\u201d<\/p><\/blockquote>\n<p>A\u00a0<a title=\"recent article\" href=\"https:\/\/www.realtor.com\/news\/trends\/is-housing-market-frenzy-going-to-cool-off-this-fall\/\" target=\"_blank\" rel=\"noopener noreferrer\">recent article<\/a>\u00a0from\u00a0<em>realtor.com<\/em>\u00a0indicates you should expect:<\/p>\n<blockquote><p>\u201c. . . annual\u00a0<strong>price increases will slow\u00a0<\/strong>to a more normal level, . . .\u201d<\/p><\/blockquote>\n<h4><strong>What Does This Deceleration Mean for You?<\/strong><\/h4>\n<p>What experts are projecting for the years ahead is more in line with the historical norm for appreciation. According to data from\u00a0<em><a title=\"Black Knight\" href=\"https:\/\/cdn.blackknightinc.com\/wp-content\/uploads\/2021\/04\/BKI_MM_Feb2021_Report.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Black Knight<\/a><\/em>, the average annual appreciation from 1995-2020 is 4.1%. As you can see from the chart above, the expert forecasts are closer to that pace, which means you should see appreciation at a level that\u2019s aligned with a more normal year.<\/p>\n<p>If you\u2019re a buyer, don\u2019t expect a sudden or drastic drop in home prices \u2013 experts say it won\u2019t happen. Instead, think about your homeownership goals and consider purchasing a home before prices rise further.<\/p>\n<p>If you\u2019re a seller, the continued home price appreciation is good news for the value of your house. Work with an agent to list your house for the\u00a0<a title=\"right price\" href=\"https:\/\/www.mykcm.com\/2021\/09\/03\/your-agent-is-key-when-pricing-your-house-infographic\/\">right price<\/a>\u00a0based on market conditions.<\/p>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>Experts expect price\u00a0<strong>deceleration<\/strong>, not price\u00a0<strong>depreciation\u00a0<\/strong>over the coming years. Let\u2019s connect to talk through what\u2019s happening in the housing market today, where things are headed, and what it means for you.<\/p>\n<p><strong>Contact us:<\/strong><br \/>\nPHP Houses<br \/>\n142 W Lakeview Ave<br \/>\nUnit 1030<br \/>\nLake Mary, FL 32746<br \/>\nPh:\u00a0<span id=\"gc-number-1\" class=\"gc-cs-link\" title=\"Call with Google Voice\">(407) 519-0719<\/span><br \/>\nFax:\u00a0<span id=\"gc-number-2\" class=\"gc-cs-link\" title=\"Call with Google Voice\">(407) 205-1951<\/span><br \/>\nemail:\u00a0info@phphouses.com<\/p>\n<p><strong>Let\u2019s Connect:<\/strong><br \/>\n<a href=\"https:\/\/www.facebook.com\/WeBuyHousesCentralFlorida\/\">Facebook<\/a><br \/>\n<a href=\"https:\/\/www.linkedin.com\/in\/walter-diloreto-25403710\/\">Linkedin<\/a><br \/>\n<a href=\"https:\/\/twitter.com\/WalterDiLoreto\">Twitter<\/a><br \/>\n<a href=\"https:\/\/www.instagram.com\/wdiloreto\/\">Instagram<\/a><\/p>\n<h5><em>The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. The author does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. The author will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.<\/em><\/h5>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re looking to buy or sell a house, chances are you\u2019ve heard talk about today\u2019s\u00a0rising home prices. And you may be wondering what the future holds. Will prices continue to rise with time, or should you expect them to fall? <a class=\"continue\" href=\"https:\/\/phphouses.com\/blog\/future-hold-home-prices\/\">Finish Reading<span> What Does the Future Hold for Home Prices?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[10,18,16,151,91,158,9,49,127,159,397,42,105,256,20,48,28,54,47,19,6,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2132"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=2132"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2132\/revisions"}],"predecessor-version":[{"id":2134,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/2132\/revisions\/2134"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=2132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=2132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=2132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}