What Will Our Market Look Like in 5 Years?

Many real estate conversations these days center on housing prices and where they might be headed. That is why we like the home price expectations survey. Every quarter, Pulsenomics surveys a nationwide panel of more than 100 economists, real estate experts, and investment and market strategists about where they believe home prices are headed over the next five years. They then average these projections from their experts into one single number. The results of the latest surveys are in, and here’s what they are saying.

Home values will appreciate by
4% over the course of 2016.

Home values will appreciate by 4% over the course of 2016, then appreciation will taper down to 3.4% in 2017, 3% in 2018 and 2019, and drop to 2.8% in 2020. The annual average appreciation over the next five years will be 3.2% nationally. The greater Seattle area will see even higher appreciation than this, but these are the likely national projections.

Cumulative house appreciation projections slowed a bit from 25% to 24.7% by 2020. The most bearish experts in the survey are still projecting cumulative appreciation of at least 9% by 2020.

The bottom line is this: individual opinions make headlines, but we believe this survey is a fair depiction of future home values. If you have any questions at all, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.