I believe that individual views make headlines but that surveys determine a consensus. That is why I 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 prices are headed over the next five years.
Then they average the projections of all 100+ experts into a single number.
The results of their latest survey
The latest survey was released last week. Here are the results:
- Home values will appreciate by 6.7% in 2013
- The average annual appreciation will be 4.7% over the next 5 years
- The cumulative appreciation will be 23.7% by 2017
- Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 13% by 2017
Remember, these are still just projections, but I do feel they carry more weight when they’re the average of 100 top Pros in the industry. I like where we’re headed, I think 4.7% a year is reasonable without fear of it being too much too fast, and I still think now is a great time to buy if you’ve been thinking about it.