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How Much Will A House Cost In 2030? – Bankrate.com

Just 17 percent of Americans believe it’s a good time to buy a home, according to a recent survey from Fannie Mae. Between higher mortgage rates, still-high home prices and broader inflationary pressure, putting off buying a home …….

Just 17 percent of Americans believe it’s a good time to buy a home, according to a recent survey from Fannie Mae. Between higher mortgage rates, still-high home prices and broader inflationary pressure, putting off buying a home might be the only option for some. What happens if you wait, though? Will the housing market of the future be any more favorable for homebuyers? Here’s what experts think.

Key housing market statistics today

  • The median home sale price hit $433,100 at the beginning of 2022, according to Census figures. That’s up from $329,000 at the start of 2020.
  • Approximately 43 percent of the homes sold in the second quarter of 2022 were within the budget of a family earning the median income of $90,000 per year, according to the National Association of Home Builders.
  • The median down payment was $35,000 in the second quarter of 2022, a 34.7 percent jump from the previous quarter, according to ATTOM.
  • So far in 2022, sales of existing homes have trended downward, according to the National Association of Realtors (NAR).
  • As of July 2022, listings remained on-market for two weeks, the shortest time frame on record, according to NAR.
  • Existing-home inventory came in at 1.31 million in July 2022, NAR reports, up 4.8 percent from June.

How much will a house cost by 2030?

While it’s relatively easy to predict short-term movements in the housing market, looking ahead to the end of the decade can be quite challenging.

At least for the foreseeable future, it is likely that home price growth will be much closer to historical norms [between 3 and 5 percent annually] than the record pace we’ve seen during the past two years.

— Nicole BachaudSenior Economist at Zillow

“Trying to predict home price movements over nearly a decade would be little more than a shot in the dark,” says Nicole Bachaud, senior economist at Zillow. “At least for the foreseeable future, it is likely that home price growth will be much closer to historical norms [between 3 and 5 percent annually] than the record pace we’ve seen during the past two years.”

“Even if inflation goes back down to 2 percent, that could take a $1 million home to $1.17 million by 2030,” says Leonard Steinberg, chief evangelist and corporate broker in New York City at Compass. “At 5 percent, it’s $1.47 million.”

Could we actually see a decline in home prices? Not likely.

“Home values have leveled off this summer while buyers pull back at today’s prices, but it’s important not to …….

Source: https://www.bankrate.com/mortgages/buying-a-house-in-2030/

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