Today, many real estate conversations center on housing prices and where they may be headed. That is why I 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 they believe 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 4.0% over the course of 2016, 3.4% in 2017 and 3.0% in the next two years, and finally 2.8% in 2020 (as shown below). That means the average annual appreciation will be 3.2% over the next 5 years.
The prediction for cumulative appreciation slowed slightly from 25.0% to 24.7% by 2020. The experts making up the most bearish quartile of the survey are still projecting a cumulative appreciation of 9.9%.
Bottom Line on Expected Housing Prices
Individual opinions make headlines. I believe the survey is a fairer depiction of future values.
However, it’s important to remember that these numbers are still based on a good guess, and may or may not reflect the actual direction of the market in years to come.
Your Florida Suncoast Realtor®, serving Dunedin, Gulfport, South Pasadena, St. Petersburg, St. Pete Beach, Treasure Island, and nearby areas.