Projected Home Prices over the Next 5 Years
Every quarter, Pulsenomics reports on the Home Price Expectation Survey where they ask over one hundred economists, real estate experts and investment & market strategists 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:
The report gave some historical perspective to annual appreciate before, during and after the bubble. We put the data in the following visual:
As we can see, the experts believe 2014 will be a stronger than normal year for for home prices. After that, we will return to more normal levels of annual appreciation.
The most optimistic quarter of the experts (the bulls) see cumulative appreciation of over 40% by 2018. Even the most pessimistic quarter of the group (the bears) see double digit appreciation in that time span.
For more information on home values and where they are headed short term and long term, check out November’s edition of KCM.