Today, many real estate conversations center around housing prices and where they may be headed. Some believe rapidly rising prices have created a new ‘housing bubble’. Others believe that the sudden rise in interest rates will impact purchasing power to such a degree that it will force prices downward. There is no lack of opinions and there is absolutely no consensus.
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
The latest survey was released last week. Here are the results:
- Home values will appreciate by 6.7% in 2013.
- The average annual appreciation will be 4.7% over the next 5 years
- The cumulative appreciation will be 23.7% by 2017.
- Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 13% by 2017.
Individual opinions make headlines. We believe the survey is a fairer depiction of future values.