A Look at Home Price Appreciation Through 2025

By Scott Morris

Home prices have increased significantly over the last few years, which in turn has grown the net worth of homeowners. Appreciation and home equity are directly linked – as the value of a home increases, so does a homeowner’s equity. And with these recent gains, homeowners are witnessing their financial stability and well-being grow to record levels.

In more good news for homeowners, the most recent Home Price Expectations Survey – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists – forecasts home prices will continue appreciating over the next five years, adding to the record amount of equity homeowners have already gained over the past year. To the right are the expected year-over-year rates of home price appreciation from the report.

What Does This Mean for Homeowners?

Home prices are climbing today, and the data in the survey indicates they’ll continue to increase, but at rates that approach a more normal pace. Even still, the amount of household wealth a homeowner stands to earn going forward is substantial. As the graph to the right illustrates, a homeowner could increase their net worth by a significant amount – over $227,000 dollars by 2026.

What does this mean for existing homeowners and prospective homebuyers?

For existing homeowners the expected, sustained growth of home prices means homeowners can continue to build on recent increases of home equity – and their financial prosperity. It also presents today’s homeowners with a unique opportunity: using their growing equity for a home upgrade. With so few homes available to purchase and strong buyer demand, there may not be a better time to sell your current house and move into one that better meets your needs.

For prospective homebuyers the data suggests homeownership will become less affordable the longer you wait. In addition to the price appreciation cited above, most experts forecast interest rates will rise in the months ahead, and even the smallest increase can influence buying power.

Bottom Line

Home prices are expected to continue appreciating over the next five years, and the associated equity gains are the quickest way homeowners can build household wealth. If you’re a current homeowner who’s ready to take advantage of your built-up equity or a prospective homebuyer concerned about diminishing buying power, let’s connect today to discuss your options. There’s no time like the present. Reach out to us at (818) 293-7511 or connect@srmrealestategroup.com or you can schedule a no-obligation introductory call online. We can’t wait to connect with you!

About Scott

Scott Morris is the Founder and CEO of SRM Real Estate Group, a Los Angeles real estate and mortgage company that does things differently. With over 30 years of experience, Scott’s passion and innovative approach to real estate is found in the promise he makes to every client: when you partner with the SRM team, you’ll save money, time, and together we’ll change lives. After his son’s Type 1 diabetes diagnosis, Scott’s life took on new meaning. He created a purpose-driven business model to put people before profits. With each successful closing, he donates a portion of his earnings to his client’s preferred charity and to the Juvenile Diabetes Research Foundation. Scott delivers deep knowledge of the local market, exceptional negotiating skills, and marketing savvy, all while helping his clients avoid high commissions and unnecessary fees.

Scott has served on the board of the Juvenile Diabetes Research Foundation’s (JDRF) Los Angeles chapter and is an active participant in their Ride-to-Cure program. When he’s not working, Scott enjoys spending time with his wife, Kelly, and his children, Ryan and Katie. He also enjoys cycling, baseball, and writing. To learn more about Scott, connect with him on LinkedIn.