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Where Are Home Prices Heading in The Next 5 Years?

Where Are Home Prices Heading in The Next 5 Years?

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 they believe 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 5.0% over the course of 2017, 4.0% in 2018, 3.2% in 2019, 3.0% in 2020, and 3.0% in 2021. That means the average annual appreciation will be 3.64% over the next 5 years.

Where Are the Home Prices Heading in The Next 5 Years? | Keeping Current Matters

The prediction for cumulative appreciation increased from 17.8% to 18.4% by 2021. The experts making up the most bearish quartile of the survey are projecting a cumulative appreciation of 6.7%.

Where Are the Home Prices Heading in The Next 5 Years? | Keeping Current Matters

Bottom Line

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


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6 replies
  1. Larry K
    Larry K says:

    Wrong, did you ever hear about the Bell Curve?
    We are at the top of that curve right now. People are having trouble making their mortgage payments.
    Banks are holding on to properties they foreclosed. They are afraid if they dump too many on the market the prices overall may lower causing buyers hesitant on pulling the trigger waiting until it drops lower.
    It’s coming within the next year. It’s enviable. Most likely will be much worse than 2008. So get ready

    Reply
    • Monica
      Monica says:

      ….? Whaaaaat? Lol The economy is good right now and there are good Loans out there people aren’t in situations like they were 10 years ago with upside down Loans, negative and amortization or interest only arms …… people are acquiring equity in their properties and first time buyers are on the up with almost 90% of the purchase loans being government backed loans. If anything the market will plateau but it’s not hitting a dive anytime soon. Have you tried selling a short sale? Or purchasing one? Thanks hold out for full value if people get to that point but there’s so many programs to help people keep their mortgage if they hit hard times for any reason, by modifying it because the banks don’t want the property they don’t want the same issues they had before.

      Reply
    • Linda Fairchild
      Linda Fairchild says:

      Voice of reason. We also have the aging population, retiring Baby Boomers, downsizing. Sure, there are hotspots, like San Francisco, but overall, I do not think the country is in very good shape. Otherwise, why all the suffering Trump supporters looking for a miracle?

      Reply
  2. Lloyd
    Lloyd says:

    It seems house prices are on the rise. There are several other plays here, some good some bad. ObamaCare is too expensive for middle class. Inflation is low so that’s good for consumer products such as food and gas. However, education and autos are rampant as far as non-reported inflation goes. Credit markets are stable for now. At the same time, there is lots of silent foreclosures because folks just can’t cope with their mortgages, but none of this shows up in statistics – this is because 1) a large company like GoldmanSachs buys the mortgage and renegotiates the mortgage down or 2) a large company like BlackStone buys property before it hits the courthouse and rents it out or 3) companies like OpenDoor or just large RE brokerages buy those properties and relist them at higher prices. Without these silent buffers, the market would be about 20% lower right now. In the end, houses are realistically too expensive for an average family, but the Fed’s programs (which feed companies like GS, OpenDoor and BlackStone) aren’t going away any time soon. So prices will continue a modest creep up, likely for the next 2-3 years. After that, they will likely sharply revert to the mean, which , at the time, will be about 50% drop. When that happens, it will take easily by 2050 for prices to come back up, because we will be in a stagflation for a very long time, where consumer items will be expensive and houses cheap because credit will be scarce due to high interest rates imposed by foreign creditors. Enjoy the ride.

    Reply
  3. Brad
    Brad says:

    What are you talking about Larry?? The DOW is a key indicator of what the echonomy is doing and has been over 20 for a while! Where do you get your info? Search and verify the Truth People! How Do you Know what you know and by what Means do you know what you know?

    Reply

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