What Is My Home Worth? A Guide to Home Valuation
9. What will my house be worth in five years?
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.
Being able to predict your home’s value in five years can help you plan. You can start by consulting the Federal Housing Finance Agency FHFA HPI Calculator to get an idea of what a home previously purchased would sell for today. It takes into consideration the average rate of appreciation of all homes in the area.
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’s value has increased over the timeframe by referencing appreciation trends for the area.
It’s a ballpark figure. For a truly accurate assessment, ask an experienced agent to provide an opinion that takes into consideration specifics about your property and developments in the neighborhood.
10. What will my house be worth in 10 years?
Historically, median home values have seen a steady price growth increase since the 1960s. Carroll mentions what real estate agents call a “seven-to-ten-year swing,” which refers to the typical housing cycle where prices rise for several years, peak, then cool or decline before beginning another upswing. “I’ve talked to economists. The predictions have been accurate.”
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. “Once the pandemic hit,” Carroll recalls, “we thought it was [the beginning of] the downturn. But it didn’t happen.”
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 “strategically think of where you want to be” and try to gauge the market’s future.
Looking at the general trend of America’s home price history 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.
»Learn more: Get a better idea of your home’s financial potential with our Home Equity Calculator. Whether you’re thinking about selling, renovating, or just planning, knowing your numbers can help you make smarter decisions.
The best equation to estimate the value of your home
Whether you’re just curious about your home’s value or need an estimate for something more urgent, like refinancing, applying for a home equity loan, checking your property taxes, planning an estate, settling assets, or going through a divorce, you can get a rough idea using an online valuation tool. However, note that AVMs don’t consider upgrades or improvements to your home or neighborhood, which reduces their accuracy.
HomeLight’s Home Value Estimator can be your convenient starting point for a free valuation. For a better idea of your home’s value, HomeLight’s HVE can direct you to a local top real estate agent, who can provide an even better estimate by preparing a CMA that presents a very accurate snapshot of your home’s value.
You can do some research on your own by checking public records, but an experienced agent will likely have a better understanding of the local market and nearby properties. They’ll also have access to additional resources, like the MLS, that can provide more detailed information to help determine a home’s value.
If you want the most accurate idea of what your home is worth, an appraisal is your best bet. A licensed appraiser will take a closer look at your property and provide an unbiased estimate based on the home itself and current market conditions.
