Where Are Home Prices Headed Over the Next 5 Years
Many of today's real estate conversations are centered around housing prices and where they may be headed. I look to the quarterly Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment and 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.
Here are the results of a recent survey
- Home values will appreciate by 4.3% in 2014.
- The average annual appreciation will be 4.2% over the next 5 years.
- The cumulative appreciation will be 28% by 2018.
- Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 16.8% by 2018.
While individual opinions may make headlines, I believe this survey is a fairer depiction of future values.