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| Future Home Values:
Where Do The Experts Think They Are Headed?
Posted: 22 Feb 2016 04:00 AM PST
 Today, many real estate conversations center
on housing prices and where they may be headed. 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 3.7% over the course of 2016,
3.3% in 2017 and 3.2% in the next two years, and finally 3.1% in 2020 (as
shown below). That means the average annual appreciation will be 3.3% over
the next 5 years.
 The prediction for cumulative
appreciation slowed slightly from 21.6% to 17.7% by 2020. The experts making
up the most bearish quartile of the survey still are projecting a cumulative
appreciation of 10.9%. 
Bottom Line
Individual opinions make headlines. We believe the survey is a
fairer depiction of future values.
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