Housing Projections, what is the market going to do. According to a few surveys and top real estate experts we are in a normal market. We are expecting to see standard gains over the next 5 years. If you see the chart below the BULLS in the market think we will have a 40% increase in values, the BEARS predict a 16% increase and all projections pan out at 28%. That is an average of 4% – 10% increase each year over the next 4 years.
Home Price Expectation Survey Year By Year
What else is Happening?
The percentage of distressed property sales is going down. In fact in January of 2013 the percentage of home sales that were bank owned or Short Sales that was 35% of all transactions that occurred. In Sept of 2013 that number dropped to 14%. This means housing prices are continuing to go up and with the increase in housing values more people can now sell their homes without it being distressed. This also allows more homes to come to the active market shifting our number 1 driving force in real estate “Supply and Demand”. The Supply has gone up without an increase in Demand. Homes will sit on the market a little longer than normal as home buyers will have more options to view before making that big decision.
If you want to buy a home should you wait?
If you decide to wait to purchase 2 major events are going to occur. First housing prices are going continue to rise over the next couple years. Second interest rates are going up. “SEE CHART BELOW” Fannie Mae predicts Rates will be at 5.3% in the 4th quarter of 2014, the national association of realtor’s believes rates will be 5.5%. Example chart below, but on a $250,000 home purchase with a rate of 4.22% today your payment is $1225 a month in 1 year from now with a rate at 5.3% on a $250,000 purchase your payment is $1388 a month. That is $168 dollars a month increase or almost $2000 a year. Should you wait? Why would you.