Where are Prices Headed Over the Next 5 Years? | Keeping Current Matters
Today, many real estate conversations center on housing prices and where they may be headed. That is why we 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 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 4.8% in 2014.
  • The cumulative appreciation will be 23.5% by 2019.
  • That means the average annual appreciation will be 3.6% over the next 5 years.
  • Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 15.1% by 2019.

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.


 

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In the latest Home Expectation Survey, Pulsenomics surveyed a nationwide panel of over 100 economists, real estate experts and investment & market strategists, to find out their prediction for home prices through 2019.

If we look at Average Annual Appreciation since 1987 we can see that we are still in a recovery after the housing bubble burst in May of 2007.

HPES Q4 Annual Appreciation

As we return to a more normal market, the experts are predicting that appreciation will slow over the next 5 years. Here is the breakdown of the Projected Mean Percentage Appreciation.

HPES Q4 Mean Appreciation

As you can see from the chart below, the most optimistic bulls of the group are predicting Cumulative House Appreciations of 32.8%, while even the bears of the group are still predicting a 15.1% appreciation by 2019.

HPES Q4 Cumulative Appreciation 2019

We believe that the Home Price Expectation Survey is a fair depiction of what the future holds for the housing market, and will continue to report on their findings as they become available.