Hoping Home Prices Will Crash? Here’s What the Experts Are Saying

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There’s a lot of mixed thinking about home prices right now.

Some buyers worry prices are too high and could fall. Others are sitting on the sidelines hoping a price drop will make buying a home more affordable.

So, what are housing experts actually expecting?

The latest Home Price Expectations Survey from Fannie Mae, which gathers forecasts from more than 100 housing experts, gives us a helpful look at where home prices may be headed.

And the latest forecast does not point to a major housing crash.

Experts Expect Home Prices To Keep Rising

According to the latest survey, the panel expects home prices to continue increasing each year through at least 2030.

The average forecast shows home prices rising by about 14.7% over the next five years. Even the more cautious experts in the survey still expect prices to be higher by 2030.

 

 

That doesn’t mean every home or every market will increase at the same pace. Real estate is local, and price changes can vary quite a bit from one area to another.

But for buyers waiting for home prices across the country to suddenly fall, the current expert forecasts don’t support that expectation.

Here in West Michigan, this is one reason it can be helpful to pay attention to local inventory, recent sales, competition, and pricing instead of making a decision based only on national headlines.

The Forecast Has Actually Improved for 2026

There’s another interesting part of the latest survey.

Experts previously expected home prices to grow about 2.1% in 2026. The newest forecast increased that estimate to approximately 2.5%.

So, expectations for this year have become slightly more positive.

Looking further ahead, projected appreciation has been adjusted downward somewhat for 2027 through 2029.

 

 

 The key word is growth.

Experts may disagree about exactly how quickly prices will rise, but the forecasts shown here continue to point toward increasing home values rather than widespread price declines.

Slower appreciation can actually be a sign of a housing market moving toward a more normal pace after the large price increases we experienced earlier in the decade.

For buyers, that could mean a little more breathing room. For homeowners, it still means the possibility of continued growth in home equity.

What Could Waiting Cost a Buyer?

This is where the numbers become especially interesting.

Suppose someone purchases a $400,000 home in 2026.

If home prices follow the average expert forecast, that home could potentially be worth about $458,314 by 2031.

 

 

That’s approximately $58,314 in potential home-price appreciation over five years.

Of course, appreciation is never guaranteed. The value of an individual home depends on the property, location, condition, local market, and many other factors.

But this example shows why waiting for a large price drop can have a cost of its own.

If prices continue rising while a buyer waits, the same type of home could cost more later.

What This Means for West Michigan Buyers and Sellers

If you're thinking about buying a home in Grand Rapids or the surrounding West Michigan area, you don't have to make a decision based on predictions alone.

Look at what is happening in the specific communities and price ranges you're considering.

How many homes are available? How quickly are they selling? Are sellers negotiating? What are homes actually selling for compared with their asking prices?

Those numbers can give you a much clearer picture of your options.

For homeowners thinking about selling, continued price growth doesn't mean every home can be priced aggressively. Buyers are paying attention to value, condition, location, and comparable sales. A good pricing strategy still matters.

Bottom Line

If you're waiting for a major housing crash before making a move, the latest expert forecasts suggest you could be waiting for something that isn't currently expected to happen.

Home-price growth may be slower than it was a few years ago, but experts still expect prices to rise over the next several years.

If you're thinking about buying or selling a home in West Michigan, I can help you look at the numbers for your specific area so you can make your decision based on what's actually happening in the local market.