Many first time buyers tend to focus on the short term when buying their first principal residence.  They will ask questions like, “What will this home be worth a year from now?” or “How much can I sell this unit for in a few years?”. A principal residence should always be purchased with a long term horizon. No one know what prices are going to do in the short term (1 to 5 Years). Instead focus on the house as shelter and a place to live and enjoy. The nice residual effect of owning Real estate is that it will appreciate in the long term but that should never be your #1 priority when buying.