The reality is far less dramatic. While some local markets are experiencing a slight price dip or leveling off due to increased inventory, there’s no national crash in sight. In fact, the overall outlook for home prices remains positive.
Let’s dig into what the experts are actually saying about the future of the housing market.
What Experts Project for the Next 5 Years
According to the latest Home Price Expectations Survey (HPES) by Fannie Mae, over 100 leading economists and housing market experts agree on one key point: home prices are expected to rise steadily over the next five years, just at a healthier pace than before.
Here’s what they’re predicting:
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🔹 Average projection: 3.3% annual growth through 2029
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🔹 Optimists: Up to 5.0% annual growth
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🔹 Pessimists: Still showing 1.3% annual growth
None of the surveyed groups are forecasting a national price crash. Instead, they’re calling for more sustainable long-term appreciation — and that’s a good thing for both buyers and sellers.
Why This Is a Healthier Market
The market is stabilizing for three main reasons:
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Foreclosures remain low, keeping sudden inventory spikes in check.
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Lending standards are more responsible than during the last crash.
Homeowners have record-high equity, providing a financial cushion and decreasing the chance of forced sales.
Even in areas with rising supply, prices may only flatten — not plummet. In contrast, markets with tight inventory could still see faster-than-average appreciation due to strong demand.
Bottom line: slower growth doesn’t mean a downturn. It means we’re entering a more balanced and sustainable housing market.
Bottom Line
Don’t let crash headlines create fear where facts say otherwise. The market isn’t falling apart — it’s moving forward with steady, long-term gains.
📍Want to know how this trend impacts your specific zip code? National numbers are helpful, but local data is what drives your real estate decisions.
👉 Reach out to The Ace Estate Team today to explore what home prices are doing in your neighborhood — and whether now is the right time for your next move.
