Home Values in 5 Years
Today, many real estate conversations center on housing prices and where they may be headed. I like to use the Home Price Expectation Survey for an easy explanation.
Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists regarding where they feel home prices are headed over the next 5 years. The projections of all 100+ experts are averaged into a single number.
Here are the results of their most recent survey:
Home values will appreciate by 4.4% over the course of 2017, 3.4% in 2018, 2.8% in 2019, 2.7% in 2020, and 2.8% in 2021. Average annual appreciation will be 3.22% over the next 5 years.
The prediction for cumulative appreciation fell from 21.4% to 17.3% by 2021. Experts making up the most bearish portion of the survey are projecting a cumulative appreciation of 6.3%.
Real Estate Bottom Line
Even the experts have differing opinions as to where home values will be in the next 5 years. However, by comparing over 100 industry experts, it gives a broad assessment of where values may be in the not too distant future.