Where Are House Prices Headed?
We are often asked where we think home prices are headed over the next year. Recently, several groups have stepped forward and given their projections as to what level of appreciation we can expect by the end of 2013. 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%
All five groups are calling for home values to rise through the end of next year. However, none are projecting that we will hit historic annual appreciation levels (3.6%) that existed prior to the housing bubble.