Home|Who We Are|Our Services|Resources|News Center|Contact Us|Client Access
More Articles  Printer Friendly Version


Costlier Homes Expected To Appreciate 4% Annually For The Next Five Years

5170 2

The value of a home nationwide is expected to rise by 1.3% in the 12-months through July 31, 2024, down from expectations for a 2.8% rise expected in the 12 months through the end of July 2023. However, expectations for home-price values varied widely by geographic region, and homes with higher values are expected to experience much higher growth in value than less-costly houses.

“While western states had strongest year-ahead house price expectations in 2021 compared with other areas of the country, the region now exhibits the weakest expectations for future growth,” according to the August 4 report by Joanne Hsu, Ph.D., director of consumer surveys at University’s of Michigan. Forty-six percent of consumers surveyed in western states expect home values to rise, down from 86% a year ago. Although 12% of western-state consumers surveyed in 2022 predicted home values would decrease over the next 12 months, this July 21% of western-state homeowners surveyed expect a decrease in value through the end of July 2024.

5170 3

Homes in the top tercile of value — the top third percentile — had the strongest prospects both in the short and long run, according to the report. In the 12 months through the end of July, the value of a home in the top tercile is expected to rise by 1.9%, about twice as much appreciation as is expected from home in other 66% of the country. In addition, over the next five years homes valued in the top tercile are expected by consumers to grow in value by 4% annually versus 2.1% for home in the lowest tercile and 3.1% for home in the middle tercile.

“Given the importance of homeownership for wealth accumulation, if these expected trends bear out, wealth inequality may widen,” according to Prof. Hsu. “Indeed, consumers with homes valued in the bottom tercile have had declining expectations over the last few years, indicating that affordability of these lower-valued homes may remain stable but that the wealth-building prospects of homeownership for lower-income families may not be strong.” Homeowners who perceived growth over the last year expect that growth to continue through July 2024.

5170 4

The Standard & Poor’s 500 stock index closed Friday at 4405.71, up +0.67% from Thursday, and up +0.82% from a week ago. The index is up +96.91% from the March 23, 2020, bear market low and -8.15% lower than its January 3, 2022, all-time high.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market-value weighted index with each stock's weight proportionate to its market value. Index returns do not include fees or expenses. Investing involves risk, including the loss of principal, and past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. ​​​​​​​

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.

Email this article to a friend

The Conference Board Backs Off Its Recession Forecast
Softening Economic Data, Inflation Fears Dampen Stock Rally
S&P 500 Closes Above 5000 For The First Time Ever
Why America Is The World’s Economic Leader
Investment News For The Week Ended Friday, January 26
Why Stocks Broke The All-Time Record High
A Strategic Update, With Stocks Near All-Time High And Crises Unfolding
2024 Begins With Positive Economic News
How 2023 Will Be Remembered In Financial History
A Good Week For The Economy And Investors 
Earnings Estimates Imply A Bullish Path For Stocks
New Jobs Data Bolsters Hopes For 2024 Economy
October Inflation Rate Slows, Spending And Income Cool, Making Further Rate Hikes Unlikely
A Time Of Money Illusion
Good News On Inflation Boosts Stocks For Third Straight Week
The Terrible Truth About Investing

This article was written by a professional financial journalist for Responsive Financial Group, Inc and is not intended as legal or investment advice.

©2024 Advisor Products Inc. All Rights Reserved.
© 2024 Responsive Financial Group, Inc | 204 W Wing St, Arlington Heights, IL 60005 | All rights reserved
P: 847-670-8000 | F: 847-590-9806 ben@rfgweb.com |
Disclosure | Contact Us
Responsive Financial Group, Inc. is a fee-only registered investment advisory firm in the State of Illinois. Information on this site is compiled from multiple locations and is believed to be accurate. Incorrect information may come from these outside sources. Should you notice anything please notify us immediately. Thank you!