Home Prices: The Difference 5 Years Makes
Are you still considering buying now or waiting to buy a home? The longer you wait, the more appreciation you are going to miss out on! Buying a home is one of the best investments you can make. Few other assets rise in value as consistently as real estate. Recently, Keeping Current Matters published an article discussing prices of home over the past five years nationwide. Check it out below!
CoreLogic recently released their Home Price Index Report. One of the key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from July 2013 to July 2018 to show how prices over the last five years have fared.
The graph below was created to show the 5-year change in price from July 2013 to July 2018 by price range.
As you can see in the graph, the highest price appreciation occurred in the lowest price range with 48% growth, while the highest priced homes appreciated by 25%. This has been greatly fueled by the lack of inventory of homes available at the lower price ranges and high demand from first-time buyers looking to enter the market.
Where were prices expected to go?
Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).
According to the Q3 2014 survey results, national homes prices were projected to increase cumulatively by 19.5% by December 2018. The bulls of the group predicted home prices to rise by 27.8%, while the more cautious bears predicted an appreciation of 11.2%.
Where are prices headed in the next 5 years?
Data from the most recent HPES shows that home prices are expected to increase by 20.0% over the next 5 years. The bulls of the group predict home prices to rise by 31.2%, while the more cautious bears predict an appreciation of 9.3%.
Source: Keeping Current Matters
Has it been a few years since you purchased your current home and you’re curious about what it’s worth in today’s market? Don’t look at your Zestimate on Zillow and assume that it is correct. Those estimates can be off by as much as 20% or more! Call us today and we would be happy to provide you with a free, no obligation market analysis for your home!
