The experts predict the future of the housing market!
A new survey of 113 real estate economists, experts, and investment strategists shows a growing confidence in the long-term prospects of home prices in the real estate market. Added to the most recent Case-Shiller Home Price Index, showing home prices up 1.2 percent nationally compared to one year ago, the gradual appreciation of real estate prices is looking more and more likely.
Ø What is the Case-Shiller Home Price Index? It is the leading measure for the US residential housing market, tracking change in the value of real estate both nationally as well as in 20 metropolitan regions. These home price indices are calculated monthly using a three-month moving average.
The survey, conducted by research and consulting firm Pulsenomics LLC on behalf of real estate search and valuation portal Zillow between Aug. 30-Sept. 14, 2012, asked 113 participants to project the path of the S&P/Case-Shiller U.S. National Home Price Index over the next five years.
Interestingly, these same economic experts had forecast flat or slightly decreased prices over the past year, but have shown increasingly bullish attitudes on home prices as more market statistics support that position.
Here are the economists’ current forecasts (these are cumulative increases over the years, not yearly increases) for the next five years:
2012: 2.3 percent increase
2013: 4.7 percent increase
2014: 8 percent increase
2015: 11.4 percent increase
2016: 15.2 percent increase
This means they are expecting an almost 3 percent increase every year between 2012 and 2016. In the prebubble years between 1987 and 1999, the annual growth rate was 3.6 percent. Not bad!
So, where will you be in five years? Still renting? Wishing you had jumped at the chance to buy a home when it was the best time in recent history to buy? Don’t be sorry -- BE SAVVY...
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