Experts Say Housing Prices Are About to Turn

by The KCM Crew on June 26, 2012 · 8 comments

Each quarter, Pulsenomics surveys a

“distinguished panel of over 100 economists, investment strategists, and housing market analysts regarding their 5-year expectations for future home prices in the United States.”

Here are the results of their latest survey:

Price appreciation/depreciation expected over the next five years:

2012: -.4%

2013: +1.3%

2014: +2.6%

2015: +3.2%

2016: +3.5%

The average pre-bubble (1987-1999) annual appreciation was 3.6%

About The Author

We at The KCM Crew are pursuing our mission of building a home for real estate information. We are truly dedicated to helping real estate professionals by supplying all the tools and resources they need to be seen as industry leaders in their marketplace. See how we can help you become an industry leader in your marketplace, and be sure to check out our page on Facebook and follow us on Twitter.

Jay Webster

This does not seem likely…how? When our state this year is expected to have a 14 month supply of foreclosures and still more the following year and folks still are still having to short sale their homes. Our job out look is not better, not even showing signs of getting better (Delaware)…we aren’t as bad off as some other areas but the ratio of income to home price is still way off. Also, when interest rates increase, they have to at some point, home prices will again go down. I don’t see this “expert” situation improving as they mentioned for another 5 plus years.
Este

This study is a joke. First, it was paid for by the real estate industry so there is an inherent conflict of interest. Second, if you look at the details, you can see that expectations have been a poor indicator of long-term appreciation. Third, they mention that the average pre-bubble appreciation was 3.6% – why should we think that the future will be more like this 12 year period vs. any other 12 year period.
http://www.facebook.com/people/April-Young/1341759596 April Young

We are witnessing it in Santa Clara County California
Santa Cruz County is warming up as well
http://www.facebook.com/ashleynicolebrooks Ashley Nicole Brooks-Realtor

Prices have already started to increase here in VA! Our foreclosures and short sales have dropped drastically since this time last year.
Housepricesaintgoingup

We have housing coming out of our ears. The economy is going into another depression-recession and no one has any income growth. So why would the price of housing go up ? Helloooooooo !!!
Vegas Realtor

We have a 4 weeks supply of homes… Prices are going up. Bidding wars, Multiple offers, Sales over List price…. I think Vegas is ready for a “Normal” market….
Plymouth MI

In the market just outside of Detroit, we were the first ones in this market, we are now experiencing multiple offers on properties that are clean, neat and are price right. Our inventory is down about 27% from last year. We are starting to see and increase in prices. Our biggest battles are with appraisers coming in with a price not matching the four offers that we have on the table.
http://twitter.com/TravisWallerCRS Travis Waller, CRS

Good to see all the different scenarios below. Remember people, your markets are all local. The info above is a national average, not specifically your market. This is why it’s imperative that you become the expert in your market an know how to explain your local market knowledge to your clients.