What Experts Predict for Home Prices | Home Price Predictions

If you’ve been holding off on buying because you’re convinced home prices are about to crash, you’re certainly not alone. There are plenty of buyers watching the market and wondering if a major price drop is just around the corner.

But what do the experts actually expect?

Fannie Mae surveys more than 100 housing experts each quarter to get their perspective on where home prices are headed. The latest results are in—and they’re not calling for a crash – not even the pessimists.

Home Prices Are Still Expected to Rise

According to the latest survey, the panel’s average forecast calls for home prices to continue increasing through at least 2030.

Over the next five years, the experts collectively expect home prices to rise by 14.7%. Even when looking specifically at the more pessimistic forecasts, prices are still expected to increase by approximately 6.6% through the end of 2030.

That doesn’t mean prices will rise at the same pace everywhere. Real estate is local, and what happens nationally doesn’t necessarily tell us exactly what will happen here in the DFW area.

But the larger takeaway is important: the experts aren't forecasting a broad housing price crash.

If you’ve been waiting for a dramatic drop in prices before making a move, it may be worth taking another look at the numbers.

The Market Is Changing, but That Doesn’t Mean Prices Are Falling

The latest forecast is also interesting when compared with what experts expected a year ago.

At this time last year, the panel was forecasting 2.1% home price growth for this year. The current forecast has increased to 2.5%.

Looking farther ahead, forecasts for 2027 through 2029 have moderated somewhat compared with what experts expected a year ago. In other words, the expectation is for a slower pace of appreciation, not falling home prices.

A little more growth here, a little less growth there. What hasn’t budged once is the idea that home prices will keep growing.

That distinction matters.

A market that is moving at a more moderate pace can create a very different environment for buyers and sellers than the rapid appreciation we saw a few years ago. It can mean more time to make decisions, more room for negotiation in some situations, and a greater need to understand what is happening in your specific market.

What Could That Mean for Buyers?

Let’s put the forecast into actual dollars.

Using a $400,000 home as an example, the panel’s current five-year price-growth forecast would translate to roughly $58,000 in additional value from appreciation alone.

Of course, no one can guarantee what an individual home will be worth five years from now. Your home's location, condition, improvements and the local market will all play a role.

But it does illustrate why waiting for a major price crash may not be the strategy some buyers are counting on.

Instead of trying to time the market based on national headlines, it can be much more helpful to understand what homes are actually doing right here in DFW and how that fits with your own goals.

What This Means for Your Next Move

Whether you're thinking about buying, selling, relocating, or simply trying to figure out whether now is the right time to make a move, the national forecast is only one piece of the puzzle.

Your finances, your timing and the local DFW market all matter.

If you're wondering what today's market could mean for your specific situation, I’d be happy to help you look at the numbers and your options.

Call me, Teresa Hill, for all your real estate needs.

*Information sourced from Fannie Mae, Realtor.com, NAR, & Keeping Current Matters