Exploring the current and future state of home appreciation.

What is the current status of home appreciation? In the past, there was a distinction between the old normal and the new normal in terms of appreciation. In the old normal, homeowners could expect a 2% to 3% annual increase in their property value. However, in 2020 and 2021, we witnessed an unprecedented surge, with homes appreciating by 30% each year.

Presently, the landscape has shifted. Instead of the previous 2% to 3% expectation, experts are now projecting a 6% to 7% appreciation rate from the present time until the next year. This means that if you’re hoping for prices to decrease, it’s important to note that experts aren’t foreseeing such a scenario. Furthermore, if you’re considering waiting to purchase a property, it’s worth considering that waiting a year might lead to a 6% to 7% price increase.

“The optimal moment to enter the real estate market is when you’re financially prepared.”

Additionally, if you anticipate a drop in interest rates before making a purchase, know that it’s important to recognize the potential consequence on prices. A decrease in rates could actually drive prices higher, potentially exceeding the projected 6% to 7% increase. 

As always, the optimal moment to enter the real estate market is when you’re financially prepared. When that time comes, feel free to call or email us. We’re always happy to help.