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Where Prices are Headed over the Next 5 Years?

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Home-Price-Expectation-275Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey

The latest survey was released last week. Here are the results:

  • Home values will appreciate by 4.5% in 2014.
  • The average annual appreciation will be 3.94% over the next 5 years
  • The cumulative appreciation will be 19.7% by 2018.
  • Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of almost 11% by 2018.

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.



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7 Responses to “Where Prices are Headed over the Next 5 Years?”

  1. Mark March 10, 2014 at 9:50 pm # Reply

    Either bullet point number 2 or number 3 is wrong. Someone simply muliplied 3.94 times 5 but that doesn’t account for compounding. If it averaged 3.94% per year, the appreciation after 5 years would be 21.31% Small issue but important over time . . .

  2. joe March 14, 2014 at 11:50 pm # Reply

    Can you find an old article from 2007 so we can see the 5 year prediction from back then?

  3. Dan March 17, 2014 at 11:39 am # Reply

    I’d like to see some analysis on the accuracy of past surveys. For instance, what did the same survey predict in 2006? Typically, sentiment surveys reflect recent past performance and have almost no correlation to future returns.

  4. Trudy lauben April 29, 2014 at 3:19 pm # Reply

    After 23yrs in the business I always learn something new. Thank you KCM

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