Future House Prices: A Look into the Crystal Ball
Today, 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
- Home values will appreciate by 4.4% in 2014.
- The cumulative appreciation will be 19.5% by 2018.
- That means the average annual appreciation will be 3.6% over the next 5 years.
- Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 9.4% by 2018.
Individual opinions make headlines. We believe the survey is a fairer depiction of future values.
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I just don’t think this is going to happen. I’m seeing price decreases in my market daily and we are in the hottest part of the buying season.
Steven, Which market are you in?
Steven, I see you’re in Denver. Surprising that you’re seeing price declines. In New York there is no weakness at all – sellers still reign supreme. Bidding wars and cash is king.
Although the survey results are encouraging, real estate property values in one local market can be very different from another. The economists that were surveyed are basing their opinions on what they expect to see on a national level even when some markets might see a decline in home values.
guess you were wrong!
Prices keep going up in Castle Rock, CO. Demand from people moving into the area keeps out pacing the new supply of inventory. It’s crazy. Prices cannot keep going up this fast continually and not slow down. It should be interesting to see what happens when interest rates rise again.
excellent !