If you're thinking of relocating to Miami this year, two key housing market factors are likely on your mind: home prices and mortgage rates. You're probably wondering about their future trends and whether it's better to move now or wait it out.
The best approach is to make an informed decision based on the latest available information. Here's what experts are currently saying about home prices and mortgage rates.
1. What’s Next for Home Prices?
A reliable source for home price forecasts is the Home Price Expectations Survey from Fannie Mae. This survey includes insights from over one hundred economists, real estate experts, and market strategists.
According to the most recent survey, experts project that home prices will continue to rise at least through 2028 (see the graph below):
While the rate of appreciation varies year-to-year, the survey indicates that home prices will increase (not decrease) for at least the next five years, but at a more moderate pace.
What does this mean for your move? If you buy now, your home is likely to appreciate in value, allowing you to build equity in the coming years. Conversely, if you wait and prices continue to climb, you'll face higher home prices later on.
2. When Will Mortgage Rates Come Down?
This is a crucial question in the industry, but it's not easy to answer. Many factors contribute to the current volatile mortgage rate environment. Odeta Kushi, Deputy Chief Economist at First American, explains:
“Every month brings a new set of inflation and labor data that can influence the direction of mortgage rates. Ongoing inflation deceleration, a slowing economy, and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates.”
The future of mortgage rates depends on the direction of these factors. Experts are optimistic that rates might decrease later this year but acknowledge that changing economic indicators will continue to play a role. As a CNET article notes:
“Though mortgage rates could still go down later in the year, housing market predictions change regularly in response to economic data, geopolitical events, and more.”
So, if you are ready, willing, and able to afford a home now, collaborate with a trusted real estate advisor to evaluate your options and make the best decision for you.
Closing Thoughts
Let’s connect to ensure you have the latest information on home prices and mortgage rate expectations. Together, we'll review expert opinions so you can make an informed decision about your move.
