Abacoa & Alton Neighbors - May 2022

2 Abacoa &Alton N E I G H B O R S | M a y 2 0 2 2 Many consumers are wondering what will happen with home values over the next few years. Some are concerned that the recent run-up in home prices will lead to a situation similar to the housing crash 15 years ago. However, experts say the market is totally different today. For example, Odeta Kushi, Deputy Chief Economist at First American, tweeted just last week on this issue: “. . . We do need price appreciation to slow today (it’s not sustainable over the long run) but high price growth today is supported by fundamentals- short supply, lower rates & demographic demand. And we are in a much different & safer space: better credit quality, low DTI [Debt-To-Income] & tons of equity. Hence, a crash in prices is very unlikely.” Price appreciation will slow from the double-digit levels the market has seen over the last two years. However, experts believe home values will not depreciate (where a home would lose value). To this point, Pulsenomics just released the latest Home Price Expectation Survey – a survey of a national panel of over 100 economists, real estate experts, and investment and market strategists. It forecasts home prices will continue appreciating over the next five years. Below are the expected year-over-year rates of home price appreciation based on the average of all 100+ projections: 2022: 9% 2023: 4.74% 2024: 3.67% 2025: 3.41% 2026: 3.57% Those responding to the survey believe home price appreciation will still be relatively high this year (though half of what it was last year), and then return to more normal levels over the next four years. WHAT DOES THIS MEAN FOR YOU AS A BUYER? With a limited supply of homes available for sale and both prices and mortgage rates increasing, it can be a challenging market to navigate as a buyer. But buying a home sooner rather than later does have its benefits. If you wait to buy, you’ll pay more in the future. However, if you buy now, you’ll actually be in the position to make future price increases work for you. Once you buy, those rising home prices will help you build your home’s value, and by extension, your own household wealth through home equity. If you want to get started, let’s connect today! Robert Heller - 561-250-2776 | www.HellerLuxuryHomes.com EXPERT CONTRIBUTOR By Rob Heller, Realtor® I Coldwell Banker Realty The Future of Home Price Appreciation and What It Means for You 561-250-2776 Robert@HellerLuxuryHomes.com www.HellerLuxuryHomes.com NOW IS THE PERFECT TIME! SELLING YOUR HOME? THINKING ABOUT SELLING 4590 PGA Blvd., Suite 108 • Palm Beach Gardens, FL 33418 We Specialize in... Robert Heller Licensed Realtor ® HELLER LUXURYHOMES Al ton • Ar t i stry • Abacoa Troy Meindertsma Sunbelt Title Agency Direct: (561) 945-5766 Troy.Meindertsma@SunbeltTitle.com Title Service and Expertise You Can Trust!