Where Are Home Prices Headed Over the Next 5 Years?

Prices-Headed-STMAccording to a recent survey by Pulsenomics even the bears expect housing prices to continue to rise over the next few years.  No one is expecting prices to drop any time soon.  Real estate has historically been a very good investment in the long term.  Yes, we had some issues a few years ago but our market has returned strong and vibrant.  It’s time for you to jump in and get a piece of the annual rate of return on a new home investment.

Courtesy Keeping Current Matters July 2016

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.

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.

Projected Appreciation | MyKCM

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%.

Cumulative Price Appreciation | MyKCM

Bottom Line

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

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a good investment that will increase in value over the coming years.

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