Where Are Home Prices Headed Over the Next 5 Years?

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 they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

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The results of their latest survey:

Home values will appreciate by 4.5% over the course of 2016, 3.6% in 2017 and about 3.2% in the next two years, and finally 2.9% in 2020 (as shown below). That means the average annual appreciation will be 3.5% over the next 5 years.

The prediction for cumulative appreciation increased slightly from 24.7% to 26.3% by 2020. The experts making up the most bearish quartile of the survey are still projecting a cumulative appreciation of 11.1%.

What does this mean for you?  If you buy a home today for $250,000 than in 2020 your investment could be worth: 

Bulls 26.3% Appreciation = $315,750 home value in 2020

All Projections 18.7% Appreciation = $296,750 home value in 2020

Bears 11.1% Appreciation = $277,500 home value in 2020

Any of these situations would be great right?  Your purchase today is worth more than you bought it for!

Great news if you buy a home Today!

The not so great news is if you wait to buy a home, home values are going up EVERYWHERE!  So if you wait too long you may not be able to afford the place you want to live in now!

Bottom Line

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

If you are ready to discuss your real estate options schedule a Real Estate Consultation with Jay Cermak Top Fort Lauderdale Real Estate Agent with Keller Williams Realty at 954.235.3589!

Serving all of your South Florida and Fort Lauderdale Real Estate Needs!