Looking at home prices from 1942 to today, home values have increased 73 years, decreased…
Does the Future Look Good for Home Prices?
CoreLogic’s Chief Economist Selma Hepp said that while home prices in December “continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.” This is a far cry from a housing crash of 20% that some in the media have been predicting.
And while CoreLogic has reported slightly negative readings month to month, they still forecast a 3% appreciation nationwide over the next year, which can be meaningful for wealth creation.
In addition, Zillow and Pulsenomics released their Home Price Expectations Survey for the fourth quarter of last year. Survey participants included 117 of the country’s top economists and were asked about their expectations for home price appreciation over the next five years.
Results showed that respondents’ average expected appreciation over the next five years is 23.3% cumulatively. To quantify this, if someone bought a $500,000 home and we saw 23% appreciation over the next five years, they would gain $115,000 in appreciation alone. This data shows excellent opportunities ahead in the housing market, despite the negativity you may hear in the media