Bainbridge Island Home Value Forecast: Experts Predict Steady Growth Over Next 5 Years

Despite prevalent data indicating that home prices are on the rise in most parts of the country, including Bainbridge Island, a significant segment of the population remains apprehensive about a potential downturn. A Fannie Mae survey highlights this concern, revealing that 23% of consumers anticipate a decrease in home prices over the coming year. This statistic represents nearly one in four individuals grappling with such worries.

To alleviate these concerns, it's essential to consider expert predictions on home prices, not just for the upcoming year but extending over the next five years.

Experts Project Ongoing Appreciation

While seeing a small handful of expert opinions may not be enough to change your mind, hopefully, a larger group of experts will reassure you. Here’s that larger group.

The Home Price Expectation Survey (HPES) from Pulsenomics is a great resource to show what experts forecast for home prices over a five-year period. It includes projections from over 100 economists, investment strategists, and housing market analysts. And the results from the latest quarterly release show home prices are expected to go up every year through 2027 (see graph below):

And while the projected increase in 2024 isn’t as large as 2023, remember home price appreciation is cumulative. In other words, if these experts are correct after your home’s value rises by 3.32% this year, it should go up by another 2.17% next year.

If you’re worried home prices are going to fall, here’s the big takeaway. Even though prices vary by local area, experts project they’ll continue to rise across the country for years to come at a pace that’s more normal for the market.

What Does This Mean for You?

If you’re not convinced yet, maybe these numbers will get your attention. They show how a typical home’s value could change over the next few years using the expert projections from the HPES. Check out the graph below:

In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in household wealth over the next five years.

The Bottom Line

For those worried about falling home prices, the consensus among experts offers reassurance: national home prices, including those on Bainbridge Island, are expected to continue their upward trajectory over the next several years. If you have any questions or need further insight into future home prices in the Bainbridge Island area, feel free to reach out and connect.