Is Buying a Home Right Now a Wise Decision in Los Angeles?
Latest Home Price Expectation Survey
Fannie Mae and Pulsenomics release the findings of the Home Price Expectations Survey (HPES) every three months. The HPES gathers insights from over 100 specialists—including economists, real estate experts, and investment and market strategists—regarding their forecasts for home prices.
According to the most recent survey, these experts predict that home prices will continue to rise over the next five years.
The abundance of green on the chart indicates a unanimous expectation among experts: no anticipated drops in home prices. Instead, they project an annual increase of 3-4%. While home prices may not rise as sharply in 2025 as they will in 2024, although moderate, these incremental gains can significantly accumulate over time. For instance, if predictions hold and your home's value increases by 3.78% this year, it is expected to grow by another 3.36% the following year and by 3.87% the year after.
In the Los Angeles market, home prices have increased by 13.8% in Santa Monica and 11.4% in Culver City.
What does this mean for you?
The continuous upward trend in home prices should be encouraging if you consider purchasing a home. Buying a home now could be a wise investment, with the potential for your property to appreciate in the coming years.
Still undecided? The projections may sway you. Based on expert forecasts from the HPES, they illustrate the potential growth in the value of a typical home over the next few years. The graph below provides a visual representation of these projections.
March Fannie Mae Economic Report and How This Affects Housing?
March 15 Weekly Note: Core retail sales growth continues to be modest, with inflation data nudging bond market forecasts more in line with the Federal Reserve's indications of potential rate cuts.
March 8 Weekly Note: Despite ongoing strength in payroll employment, other economic indicators suggest a softening trend.
March 1 Weekly Note: Consumer spending declined in January, and pending home sales pulled back, largely due to the rise in mortgage rates.
Conclusion
With inventory levels remaining persistently low, new construction lagging behind demand, and anticipated federal rate cuts, this year offers a prime opportunity for purchasing real estate. Over time, real estate values will likely rise, affirming that housing remains a potent asset for wealth building. Moreover, it serves as a protective measure for future generations. Investing in a house or any form of real estate now can enhance your portfolio and provide your grandchildren with a significant advantage.
If you feel it's time to acquire your own space and are prepared and financially capable, purchasing a home now could be wise. With home values anticipated to continue rising, investing in a property now means you'll likely see its value increase over time. Let's collaborate and begin the search for your new home today.