Housing Market Predictions For The Next 5 Years. What Return Can You Expect?
Housing Market Predictions For The Next 5 Years. What Return Can You Expect?
Abstract
So what is the property market looking like it's going to do over the next few years? Download Q.ai today for access to AI-powered investment strategies. 1 Year It's probably not going to come as a shock that the property market is expected to soften over the next year. According to data from Freddie Mac, the average interest rate on a 30 year fixed mortgage is currently 7.08%. Just one year ago, that same average was under 3%. That's a massive difference and it is going to have a major impact on first time home buyers or would-be movers. A 30 year mortgage of $300,000 at a rate of 2.98% would result in a monthly repayment of $1,262. We aren't likely to see the 'hockey stick' growth that was experienced during the pandemic years, but values are likely to creep up towards the end of the period. Chief economist for the National Association of Realtors Lawrence Yun believes we are likely to see total price growth across the country of between 15% - 25% over the next five years. Falls off a high base It's important to keep in mind that the falls that are expected over the next 1 to 2 years are coming off a high base.