$\"Think$ \n

One of the biggest reasons buyers are still sitting on the sidelines is because they think home prices are going to come down.<\/p>\n

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Some believe a crash is coming and they\u2019ll get a better deal if they hold off.<\/p>\n<\/li>\n
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Others worry they\u2019ll buy now and watch their home\u2019s value fall later.<\/p>\n<\/li>\n<\/ul>\n
And nobody wants to overpay or buy right before values drop. But here\u2019s the question worth asking:<\/p>\n
What if the crash you\u2019re waiting for isn\u2019t actually coming?<\/em><\/strong><\/p>\n
Because that\u2019s what the latest data suggests.<\/p>\n
Experts Are Not Calling for a Crash<\/strong><\/h4>\n
If you\u2019ve spent any time online lately, you\u2019ve seen posts claiming home prices are about to come crashing down. And it\u2019s true that some markets are seeing small price declines<\/a> right now.<\/p>\n
But that\u2019s not the same thing as a nationwide crash.<\/strong><\/p>\n
While some places are going through a price adjustment, Realtor.com<\/em> data shows home prices are still rising in 71%<\/a> of housing markets across the country.<\/p>\n
The trouble is, since negative news sells, you\u2019re seeing more coverage about how a handful of markets are seeing declines, than how the majority are still seeing prices rise<\/a>. And that\u2019s unfortunate.<\/p>\n
It\u2019s exactly why a lot of buyers end up with the impression that prices are falling everywhere when they\u2019re not. So how do you really know where prices are really <\/em>headed from here?<\/p>\n
That\u2019s where the Home Price Expectations Survey<\/em> (HPES) from Fannie Mae<\/em><\/a> <\/em>comes in.<\/p>\n
Home Prices Will Rise for the Next 5 Years<\/strong><\/h4>\n
Every quarter, more than 100 economists, housing experts, and market analysts are asked where they think home prices are headed based on the latest data available.<\/p>\n
And despite all the uncertainty in today\u2019s market, there\u2019s one thing they largely agreed on:<\/p>\n
They don\u2019t think a crash is coming.<\/strong><\/p>\n
In fact, the average of all of their forecasts calls for home prices to rise every year for at least the next 5 years (see graph below<\/em>):<\/p>\n
$\"a$ <\/p>\n
The point is that the overwhelming expectation isn\u2019t for prices to fall. It\u2019s for prices to rise at a more normal pace. And just in case you\u2019re looking at the forecasts and saying: \u201cof course they\u2019d say that<\/em>\u201d \u2013 know that this survey doesn\u2019t just include optimists. It includes pessimists too.<\/p>\n
Even the Pessimists Aren\u2019t Predicting a Crash<\/strong><\/h4>\n
Researchers broke the panel into groups based on how bullish or bearish they were about housing. The result? Even the most pessimistic group still expects home prices to climb over the next five years.<\/p>\n
Optimists think we\u2019ll see prices go up roughly 4% a year. Pessimists say it\u2019ll be closer to 1%. The reality may be somewhere in the middle.<\/p>\n
$\"a$ <\/p>\n
Think about that for a second. The debate among experts isn\u2019t <\/em><\/strong>whether prices will crash. It\u2019s <\/em><\/strong>how much they\u2019ll rise.<\/p>\n
That\u2019s a very different conversation than the one happening across social media.<\/p>\n
This Means Waiting Could Actually Cost You<\/strong><\/h4>\n
So, if you\u2019re putting off your move until prices come down, you may be disappointed. According to the experts, a widespread crash isn\u2019t in the cards.<\/p>\n
In fact, based on the HPES forecast, a buyer who purchased a $400,000 home this January would gain nearly $40,000 in equity over the next five years from appreciation alone, even in this more moderate market (see below<\/em>):<\/p>\n
$\"a$ <\/p>\n
Of course, this all depends on local market conditions. This forecast is a national average. But broadly speaking, if the experts are right, the bigger risk isn\u2019t that prices will crash. It may be waiting for a crash<\/a> that never comes.<\/p>\n
Because depending on your market, if you wait, you could be missing out on $40k in equity or paying 40k more in 5 years for the same house.<\/p>\n
Bottom Line<\/h3>\n
A lot of buyers are waiting because they think prices will fall, but that\u2019s not what the experts are saying.<\/strong><\/p>\n
If you\u2019re trying to decide whether waiting still makes sense, connect with a local agent. They\u2019ll help you understand what\u2019s happening in your local market and what it could mean for your plans.<\/p>\n<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"
One of the biggest reasons buyers are still sitting on the sidelines is because they think home prices are going to come down. Some believe a crash is coming and they\u2019ll get a better deal if they hold off. Others worry they\u2019ll buy now and watch their home\u2019s value fall later. And nobody wants to […]<\/p>\n","protected":false},"author":1,"featured_media":6466,"comment_status":"registered_only","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[12],"tags":[29,27,20,18,28],"class_list":["post-6465","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-insight","tag-idaho-real-estate","tag-north-idaho-homes","tag-rain-silverhawk","tag-real-estate","tag-sandpoint-idaho"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t