{"id":7368,"date":"2021-10-19T06:00:42","date_gmt":"2021-10-19T10:00:42","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7368"},"modified":"2021-10-19T06:00:42","modified_gmt":"2021-10-19T10:00:42","slug":"what-does-the-future-hold-for-home-prices","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7368","title":{"rendered":"What Does the Future Hold for Home Prices?"},"content":{"rendered":"<div>\n<p><img decoding=\"async\" width=\"358\" src=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/10\/20211019-KCM-Share-549x300-1.jpg\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"What Does the Future Hold for Home Prices? | Simplifying The Market\" loading=\"lazy\" style=\"display: block; margin-bottom: 5px; clear:both;max-width: 100%;\" link_thumbnail=\"\" srcset=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/10\/20211019-KCM-Share-549x300-1.jpg 549w, https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/10\/13150257\/20211019-KCM-Share.jpg 750w\" sizes=\"auto, (max-width: 549px) 100vw, 549px\"><\/p>\n<p>If you\u2019re looking to buy or sell a house, chances are you\u2019ve heard talk about today\u2019s <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/10\/06\/what-do-supply-and-demand-tell-us-about-todays-housing-market\/?a=616460-ab6caa3a6a8f085fc17c865a33a506b4\">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?<span id=\"more-45334\"><\/span><\/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 href=\"https:\/\/www.merriam-webster.com\/dictionary\/appreciation\"><strong>Appreciation<\/strong><\/a> is an <em>increase<\/em> in the value of an asset.<\/li>\n<li><a href=\"https:\/\/www.merriam-webster.com\/dictionary\/depreciation\"><strong>Depreciation<\/strong><\/a> is a <em>decrease<\/em> in the value of an asset.<\/li>\n<li><a href=\"https:\/\/www.merriam-webster.com\/dictionary\/deceleration\"><strong>Deceleration<\/strong><\/a> is when something happens at a <em>slower pace<\/em>.<\/li>\n<\/ul>\n<p>It\u2019s important to note home prices have increased, or <strong>appreciated<\/strong>, for <a href=\"https:\/\/www.nar.realtor\/newsroom\/existing-home-sales-recede-2-0-in-august\">114<\/a> straight months. To find out if that trend may continue, look to the experts. <a href=\"https:\/\/pulsenomics.com\/surveys\/#home-price-expectations\"><em>Pulsenomics<\/em><\/a> surveyed 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 <strong>deceleration<\/strong>, but not <strong>depreciation<\/strong>.<\/p>\n<p>Here\u2019s the forecast for the next few years:<a href=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/10\/20211019-MEM-Eng-1.png\" data-rel=\"lightbox-image-0\" data-rl_title=\"\" data-rl_caption=\"\" title=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-45336\" src=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/10\/20211019-MEM-Eng-1.png\" alt=\"What Does the Future Hold for Home Prices? | Simplifying The Market\" width=\"650\" height=\"488\" srcset=\"https:\/\/blog.sfloridaluxuryhomes.com\/wp-content\/uploads\/2021\/10\/20211019-MEM-Eng-1.png 1000w, https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/10\/13150300\/20211019-MEM-Eng-1-400x300.png 400w\" sizes=\"auto, (max-width: 650px) 100vw, 650px\"><\/a>As the graph above shows, prices are expected to <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/09\/09\/home-price-appreciation-is-skyrocketing-in-2021-what-about-2022\/?a=616460-ab6caa3a6a8f085fc17c865a33a506b4\">continue to rise<\/a>, just not at the same pace we\u2019ve seen over the last year. <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 <a href=\"https:\/\/www.calculatedriskblog.com\/\"><em>Calculated Risk<\/em><\/a>, also expects <strong>deceleration, <\/strong>but not depreciation:<\/p>\n<blockquote>\n<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 <strong>price increases\u00a0will slow\u00a0<\/strong>later this year.\u201d<\/em><\/p>\n<\/blockquote>\n<p>Ivy Zelman of <a href=\"https:\/\/www.zelmanassociates.com\/\"><em>Zelman &amp; Associates<\/em><\/a> agrees, saying:<\/p>\n<blockquote>\n<p>\u201c. . . home price appreciation is on the cusp of flipping to a <strong>decelerating<\/strong> <strong>trend<\/strong>.\u201d<\/p>\n<\/blockquote>\n<p>A <a href=\"https:\/\/www.realtor.com\/news\/trends\/is-housing-market-frenzy-going-to-cool-off-this-fall\/\">recent article<\/a> from <em>realtor.com<\/em> indicates you should expect:<\/p>\n<blockquote>\n<p>\u201c. . . annual <strong>price increases will slow <\/strong>to a more normal level, . . .\u201d<\/p>\n<\/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 <em><a href=\"https:\/\/cdn.blackknightinc.com\/wp-content\/uploads\/2021\/04\/BKI_MM_Feb2021_Report.pdf\">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 <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/09\/03\/your-agent-is-key-when-pricing-your-house-infographic\/?a=616460-ab6caa3a6a8f085fc17c865a33a506b4\">right price<\/a> based on market conditions.<\/p>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>Experts expect price <strong>deceleration<\/strong>, not price <strong>depreciation <\/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>Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<div><img decoding=\"async\" width=\"358\" src=\"https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/10\/13150257\/20211019-KCM-Share-549x300.jpg\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"What Does the Future Hold for Home Prices? | Simplifying The Market\" loading=\"lazy\" style=\"display: block;margin-bottom: 5px;clear:both;max-width: 100%\">If you\u2019re looking to buy or sell a house, chances are you\u2019ve heard talk about today\u2019s rising home prices. 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? To answer [\u2026]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,134,84,85,86,121,133],"tags":[],"class_list":["post-7368","post","type-post","status-publish","format-standard","hentry","category-blog","category-buying-myths","category-for-buyers","category-for-sellers","category-housing-market-updates","category-pricing","category-selling-myths"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7368"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7368\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}