Will the value of my home keep going up?
Where will home prices be over the next five years?
Last month, the Home Price Expectation Survey was released. This is a quarterly report prepared by a nationwide panel of over 100 economists, real estate experts and investment and market strategists.
The basic question they ask these professionals is, "Where do you think prices are going to be over the next five years?". From the consumer standpoint, they answer the question, "Will the value of my home keep going up?".
Find out what's happening in St. Charlesfor free with the latest updates from Patch.
The nice thing about this report is that it takes both ends of the spectrum, bulls and bears, and everyone in between and meshes all their answers together, and then you get the average.
So what we can see in the report is the normal appreciation (before any of the roller coaster ride we’ve been on for the last decade) was 3.6 percent on an annual basis. During the bubble, obviously that shot way up, it more than doubled. During the bust there had to be a correction. And right now we’re 4.3 percent back from the bottom. And what they’re projecting going forward is that over the next several years the annual appreciation is going to be about 4.1 percent.
Find out what's happening in St. Charlesfor free with the latest updates from Patch.
So let’s take a look now at what they see going forward. In 2014, next year, they’re seeing a 4.2 percent appreciation and then for the next several years after that, the next three years after that, we’re going back to what normal appreciation was before the roller coaster ride, about three and a half percent.
So what are we doing? We’re making up some lost ground this year and next, and then things are going to normalize. And that’s good because in a normal market everyone knows how to act and react. Again, we’re off the roller coaster ride, driving down the road. So will the value of my home keep going up? YES.
This is great news for home owners, and those looking to get back in the market. You no longer have to wonder, "Should I invest in real estate?". It's a great time to buy, and a wise investment in your future.
The Kombrink Team at RE/MAX Great American North in St Charles, Illinois is always here to help you make sense of all the real estate information out there. Feel free to contact us anytime to discuss your real estate needs.
