Any single person or entity would have a tough time saying they know exactly where home prices will go over the next year. Fortunately, a number of groups have stepped forward recently to give their projections on what type of appreciation we can expect by the end of 2013. Thanks to The KCM Crew for pulling these together so we can explore the trends when you look at them as a whole. Here is what they said:
- Demand Institute Study: 1.75% appreciation
- Urban Land Institute: 2%
- Home Price Expectation Survey: 2.44%
- National Assoc of Business Economists: 2.8%
- Wall Street Journal’s Survey of Economists: 3.25%
These figures average out to 2.45% appreciation for 2013 so this is going to be the new number I use for all the inquiries I get until I hear something different that makes more sense! Here is how I interpret this number for all of you out there:
Thinking about selling: You should be happy as it looks like you won’t lose any value, but I would still strongly encourage you to think about listing now as there is a shortage of homes for sale and we do expect more listings next spring. Any additional appreciation in value you might be holding out for could easily be offset by the multiple offer scenarios we’re seeing in this seller’s market.
Thinking about buying: Prices and interest rates are both very low right now and with both projected to rise even modestly next year, now is certainly the right time to be looking.
Let me know if you have any comments, opinions or questions on the above! It will be interesting to see how true this number rings when we look back on this in 2013…