…I’m putting my money on the homeowners.
Where Are the Home Prices Heading in the Next 5 Years?
I’ve been hearing that we’re headed for a crash in real estate for ages. The idea is tossed about like gospel truth, casually and seriously. And yet, to me, it feels a bit like Chicken Little running around yelling “the sky is falling”. I see no proof in lending practices and I hear no support when I speak to my favorite financial gurus. But they still whisper of it over coffee and promote it in conference rooms.
Crisis level housing shortages across the country keep buyers searching for scraps. And not just a handful of buyers. Spectacular amounts of buyers are locked out of the market, not because they can’t afford it, or have bad credit, but because the competition is brutal. Quick. So, it came as no surprise to me when this 5-year forecast arrived.
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 4.4% over the course of 2017, 3.4% in 2018, 2.8% in 2019, 2.7% in 2020, and 2.8% in 2021. That means the average annual appreciation will be 3.22% over the next 5 years.
The prediction for cumulative appreciation fell from 21.4% to 17.3% by 2021. The experts making up the most bearish quartile of the survey are projecting a cumulative appreciation of 6.3%.
Bottom Line
Individual opinions make headlines. And outliers will always shout about the extremes from the rooftops. But when 100 experts, drawing from the extremes, pull together with cohesive insights, I’m putting my money on them.
6.3% appreciation as their worst case scenario? Sounds like a nice market.
Ready to grab your share of appreciation? Let’s chase that dream. And catch it.
I literally wake up in the middle of the night with marketing ideas for my listings. Using modern marketing tactics, I pride myself on setting the gold standard for Real Estate marketing.
Nearly 50% of the properties that I marketed last year went under-contract opening weekend. Trust me. My clients were delighted.
Personally, I love to dance (tango, west coast swing, lindy hop), surf (well, I try to), and laugh (every chance I get)!
Joyfully,
Ann
