When most people buy a house, they think at least 5 years out.
That’s one of the reasons it’s a good idea to look that far ahead when you are considering purchasing or trading up to a bigger home.
The Home Expectations Survey, published quarterly by Pulsenomics, provides a quick summary of what a nationwide panel of 100+ economists, real estate experts and investment & market strategists expect housing values to do in the next 5 years.
The average projections of all the experts are summed up in a single percentage that defines where they think prices are headed.
Here’s What the Latest Survey Revealed
- Home values will INCREASE by 4.1% in 2015 over 2014 values.
- Home Values Will INCREASE by 18.1% (cumulative) by 2019.
That’s an average annual appreciation of 3.4% over the next 5 years. (3.4 x5=18.1).
Pessimists and Optimists
The most pessimistic experts taking the survey thought the cumulative appreciation would be at least 10.5% by 2019. While the quartile of experts with the most optimistic outlook expected home values to rise over 25% in the next 5 years, exceeding bubble-era peaks by February 2017. If the panelists’ projections hold true the median U.S. home value will break through the April 2007 pre-recession peak of $196,400 in December of 2017. (See Chart Above)
As I’ve said here before, sooner rather than later is the best time to buy a home. This survey further supports my conclusions. Values are expected to go up. Also, this month, the Fed may raise rates. Even if they wait — due to stock market volatility — it is only a matter of months (not years) before they do so. The bottom line: If you plan to buy or sell in the next 5 years, NOW is the optimum time. If you wait, you risk higher prices and interest rates eating away at your buying power.
Contact Us Today and We’ll Help You Find the Home of Your Dreams
Call me at 912-844-9000 or fill out this contact form and I’ll reach out to you. But hurry, you don’t want to wait too long and miss this optimum buying opportunity.