Where are home prices expected to go?
CoreLogic recently released their Home Prices Index Report. Among key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from July 2013 to July 2018, showing how prices over the last five years have fared.
The graph below shows the 5-year change in price from July 2013 to July 2018 by price range.
As you can see in the graph, the highest price appreciation occurred in the lowest price range with 48% growth. The highest priced homes appreciated by 25%. This has been greatly fueled by the lack of inventory of homes available at the lower price ranges and high demand from first-time buyers looking to enter the market.
Where were prices expected to go?
Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists. Pulsenomics asks them to project how residential home prices will appreciate over the next five years.
According to the Q3 2014 survey results, national homes prices were projected to increase cumulatively by 19.5% by December 2018. The bulls of the group predicted home prices to rise by 27.8%. The more cautious bears predicted an appreciation of 11.2%.