Where Home Prices Will Be in the Next 5 Years

Prospective home buyers and sellers are often curious where the market is believed to be heading within 5 or so years.  A useful tool in determining this is the Home Price Expectation Survey.

The Home Price Expectation Survey is performed every quarter by Pulsenomics. A nationwide panel comprised of over one hundred economists, real estate experts, and investment and market strategists are surveyed on where prices are headed over the next five years.  These results are then averaged and comprised into a single number for our viewing.


Here are the results of their latest survey, courtesy of the KCM blog:

• Home Values are expected to appreciate by 4.3% in 2014
  
  
• The average annual appreciation will be 4.2% over the next 5 years

• Cumulative appreciation will be 28% by 2018

We recently addressed the question when will the real estate market be "normal" again, and the answer is now!  In large part, the reason for that is that inventory levels have reached a solid balance (we are neither in a buyer's market, nor a seller's).  We saw plummeting inventory levels earlier this year, but current levels are actually higher than they were a year ago at this time.

Want to know what these findings mean for your process?  Don't hesitate to send me an e-mail or give me a call.  I will be happy to answer your questions.