Where are Prices Headed over Next 5 Years?
Today, many people wonder where housing prices may be headed. No one has a crystal ball but Pulsenomics has been tracking real estate trends for years and does an excellent job in this area. Every quarter, they survey 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 look at the data in a couple of different ways. The first way is to average the projections of all 100+ experts into a single number and then they look at the trends. The results of the survey were released last week.
For the average projections of all the experts, the numbers are as follows:
- Home values will appreciate by 4.5% in 2014.
- The average annual appreciation will be 3.94% over the next 5 years
- The cumulative appreciation will be 19.7% by 2018.
Pulsenomics also reports the high and the low predictions. As you can see from the graph below, even the most conservative of all responders see housing prices continue to increase by a significant amount.
Another way to look at this data is by reviewing the U.S. Home Price Scenarios graph as shown below. As you can see, all experts agree that home prices will increase over the next 5 years.
Visit Pulsenomics for even more information regarding their Home Price Expectations Survey.