Where Are San Diego Home Prices Headed?
There is currently a lot of speculation that we are headed for another housing bubble. That a crash is just around the corner . . . again.
For more on that see my blog: Are We Headed For Another Housing Bubble?
But where are home prices headed? The best thing is to take a look at what the experts are thinking. And as with anything else some will think lower or higher than others, but if we take an average we are generally pretty close. This is what a nationwide panel of over 100 economists, real estate experts and investment & market strategists are saying about this year nationwide:
I think that when the new study comes out that number will be slightly higher. But when we look at the next few years they are NOT projecting that prices are going to fall. In fact we are headed to a more normal annual appreciation, and pretty much have a steady market over the next 4-5 years.
Here is a look at their Cumulative House Appreciation projections thru 2020.
So the bulls, the most positive of the 100+ economist surveyed think that prices will increase 25% (5% annually). The even the bears, the most negative still think that it will increase 10.9% over the next 5 years. But even looking at the average it is still 17.7%. The projection is a return to a more normal market . . . finally.
Prices are not going to continue to skyrocket, but they are not going to decrease either. The rate of acceleration is going to slow down.
So should you wait to list your home for sale? No. While we believe that homes will still appreciate we also believe that mortgage rates will begin to increase and that will effect the number of buyers looking for homes.
Would you rather list your home for sale when there are more buyers or less? Nothing drives prices like demand.
NOW is the best time to sell your home. To find out how much your home is worth in todays market get your FREE Home Valuation Report today.