Housing inventory is back to “normal” levels, which means home availability for potential buyers is the strongest as it’s been in the last 5 years. While it wasn’t a fast road back, like any kind of growth, slow and steady shows the potential for continued stability, which is good news for anyone looking to buy or sell a home in the near future.
In the most recent Home Price Expectation Survey from Pulsenomics, the sights are on the next five years of housing prices, and the indicators are in support of 5 years of slow and steady growth. Based on a nationwide panel of over 100 economists, real estate experts and investment & market strategists, the highlights of their projections are:
- Home values will appreciate by 4.4% in 2015.
- The cumulative appreciation will be 19.3% by 2019.
- That means the average annual appreciation will be 3.6% over the next 5 years.
- Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 11.7% by 2019.
See the complete survey here.
What The Home Price Expectations Survey™ Means
Before the bubble broke in 2008, we saw sharp and bloated leaps in housing prices within a few years’ time. This increase in “values” led to a run on the real estate market, both from investors and home buyers alike. The result? A foreclosure epidemic on real estate due to inability to pay ARM mortgages put in place to allow the run to progress.
Thankfully, as of December 2014, foreclosure inventory is down more than 34% since the year before. While some states are still seeing aftereffects of the housing crash, the slow and steady increase in housing prices projected for the next 5 years is a good indicator of stability overall.
If you are in the market to buy a home, chances are you will see that stabilization continue. Keep in mind, the longer you wait, the higher house prices go as well.
The first step is always to meet with your local banker and get pre-approved.
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