Where Will Home Values Go From Here?
The dramatic rise in home prices is a direct result of more buyers in the market (demand) than houses available for sale (supply). When demand is high and supply is low like it is right now, prices naturally rise.
But today’s buyers are wondering what the future holds. Will prices continue to rise with time, or should you expect them to fall? To answer that question, let’s first look at a few terms you may be hearing right now.
•Appreciation is an increase in the value of an asset.
•Depreciation is a decrease in the value of an asset.
•Deceleration is when something happens at a slower pace.
It’s important to note home prices have increased, or appreciated, for nearly 10 years now. According to Greg McBride, Chief Financial Analyst at Bankrate, home prices are projected to continue increasing, too:
“… Waiting in expectation that prices will fall seems unlikely to pay off.”