Where Are Prices Headed Over The Next Five Years?

By
Real Estate Agent with Hrisco & Associates Lic.#480703

Where Are Home Prices Headed Over The Next Five Years? 

The answer is no where, but UP!  Here are the results of the latest Home Price Expectation Survey conducted by Pulsenomics.  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.

If we look at Average Annual Appreciation since 1987 we can see that we are still in a recovery after the housing bubble burst in May of 2007.

Home Price Expectation Survey_Q4_Annual_Appreciation

As we return to a more normal market, the experts are predicting that appreciation will slow over the next 5 years. Here is the breakdown of the Projected Mean Percentage Appreciation.

Home Price Expectation Survey

As you can see from the chart below, the most optimistic bulls of the group are predicting Cumulative House Appreciations of 32.8%, while even the bears of the group are still predicting a 15.1% appreciation by 2019.  Which one are you, a bear or a bull?

Home Price Expectation Survey_Cummulative_Appreciation_2019

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 4.8% in 2014.
  • The cumulative appreciation will be 23.5% by 2019.
  • 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 15.1% by 2019.

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

We believe that the Home Price Expectation Survey is a fair depiction of what the future holds for the housing market, and will continue to report on their findings as they become available. 

Visit my blog daily for the most up to date information about todays real estate market.


Posted by

Hrisco & Associates | Fathom Realty, LLC:  Experience Matters, the agent you need, the results you want. Licensed Texas Real Estate Broker #480703, with over 21+ years experience buying & selling real estate in the D/FW Metroplex. Integrity, Professionalism, Results & Charity is our Mantra. It is how we go about our lives and our business. We undertake a specialized set of tasks and orchestrate them with uncommon skills. Whether you are buying, selling, or investing in real estate, if you are not doing business with Hrisco & Associates, you are losing money.

servicing the Dallas/Fort Worth Metroplex: including Argyle & Southern Denton and Northeast Tarrant Counties; Ft. Worth, Keller, Southlake, Colleyville, Grapevine, Haslet, Trophy Club, Roanoke, Westlake, NRH & Surrounding areas

Hrisco & Associates
Fathom Realty, LLC
3960 FM 2181
Hickory Creek, TX 75065

 

Comments (6)

Tanya Van Blake-Coleman
Van Blake-Coleman Realty, St. Thomas/www.talk-to-Tanya.com - St Thomas, VI
Improving the Quality of Your Life

Interesting numbers John. The question will be if prices go up how will the changing variables in respect to lending help us to take advantage of that. Or will they in fact hinder us with rising interest rates and more stringent lending policies? Just food for thought. Hopefully the stars will align in perfect balance of high home prices matching with reasonable interest rates and lending to bring it all together.

Nov 18, 2014 10:19 AM
Winston Heverly
Winston Realty, Inc. - Atlantis, FL
GRI, ABR, SFR, CDPE, CIAS, PA

John,  a helpful read today with a lot of nice information that we can all use.

Nov 18, 2014 02:59 PM
David Saks
(retired) - Memphis, TN

Fine post and great information. Have a really great day ahead.

Nov 19, 2014 07:05 PM
Hrisco & Associates
Hrisco & Associates - Roanoke, TX
Roanoke Homes for Sale - Roanoke Neighborhoods

Tanya, I agree with you, the key is for price not to increase drastically, otherwise, we will end up in another bubble like in 2007-2008, rates are supposed to increase at least 1% over the next year...think the key is to keep the stronger guidelines in place, but open it up to lesser down payment required so that more qualified buyers can come into the market.

Winston and David, thanks for your comments as well.

Nov 19, 2014 08:22 PM
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Good morning John Hrisco & Associates  Very good information. I'm always interested in seeing what the real estate market is projected to do.

Nov 22, 2014 05:50 PM
Hrisco & Associates
Hrisco & Associates - Roanoke, TX
Roanoke Homes for Sale - Roanoke Neighborhoods

Hey Michael, thanks for the comment, and the likes, etc...how are things in the Nashville area?

Nov 23, 2014 03:01 AM