\n<\/p>\n
Carroll likes to say that you never lose in real estate if you hold onto property long-term. Depending on your goals, however, you could lose money if you buy or sell at the wrong time.<\/p>\n
Being able to predict your home\u2019s value in five years can help you plan. You can start by consulting the Federal Housing Finance Agency FHFA HPI Calculator<\/a> to get an idea of what a home previously purchased would sell for today. It takes into consideration the average rate of appreciation<\/a> of all homes in the area.<\/p>\n The easy-to-use calculator asks you to input your state, the quarter and year you purchased the property, and the original purchase price. It then calculates how your home\u2019s value has increased over the timeframe by referencing appreciation trends for the area.<\/p>\n It\u2019s a ballpark figure. For a truly accurate assessment, ask an experienced agent<\/a> to provide an opinion that takes into consideration specifics about your property and developments in the neighborhood.<\/p>\n Historically, median home values<\/a> have seen a steady price growth increase since the 1960s. Carroll mentions what real estate agents call a \u201cseven-to-ten-year swing,\u201d which refers to the typical housing cycle where prices rise for several years, peak, then cool or decline before beginning another upswing. \u201cI\u2019ve talked to economists. The predictions have been accurate.\u201d<\/p>\n Until COVID-19, that is. The U.S. housing market exceeded the ten-year upswing, in part due to the COVID effect and its ripples in the supply chain. \u201cOnce the pandemic hit,\u201d Carroll recalls, \u201cwe thought it was [the beginning of] the downturn. But it didn\u2019t happen.\u201d<\/p>\n The housing market took off during the pandemic, but by 2024 to 2026, things started to cool down. Mortgage rates have been hovering around the 6% to 7% range, price growth has slowed to modest gains, and while more homes are hitting the market, inventory is still tight. In a market like this, Carroll advises clients to \u201cstrategically think of where you want to be\u201d and try to gauge the market\u2019s future.<\/p>\n Looking at the general trend of America\u2019s home price history<\/a> can help predict potential trends 10 years in the future. However, even this extensive historical data cannot account for unexpected dips and surges in the market.<\/p>\n10. What will my house be worth in 10 years?<\/h2>\n