Today, many real estate conversations center on housing prices and where they may be headed. People have questioned with all the new construction going on in Sarasota and Lakewood Ranch will the same things happen again? Are we going down the same path we did from 2007-2011? That is why we 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 they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.
The results of their latest survey:
Home values will appreciate by 4.0% over the course of 2016, 3.4% in 2017 and 3.0% in the next two years, and finally 2.8% in 2020 (as shown below). That means the average annual appreciation will be 3.2% over the next 5 years.
The prediction for cumulative appreciation slowed slightly from 25.0% to 24.7% by 2020. The experts making up the most bearish quartile of the survey are still projecting a cumulative appreciation of 9.9%.
Individual opinions make headlines. We believe the survey is a fairer depiction of future values. This increase in growth is not being built on crazy mortgages and speculation. The people purchasing homes now can afford the payments they are taking on. Couple this with the fact that 30 year fixed mortgages are still at record lows and this is an amazing time for both buyers and sellers in Sarasota, Bradenton and Lakewood Ranch.