This second installment of the December 2018 edition of the Real Estate Market Update is a continuing the discussion of the 2019 forecast and applying it to the next five years.
The Home Price Expectation Survey shown above shows us what the major players project for home appreciation values (averaged for entire country). Some have projected for the next five years, some for four and others for the next three years. As we can see, every single one of the projections are in green. This means that there is no depreciation in home values projected for at least the next five years.
CoreLogic has projected for the next 12 months broken down by state:
According to their projections, there isn’t a single state in the country where home values are going to depreciate. In California, we even see that home values are going to continue to appreciate at a phenomenal rate—8.1% on average throughout the state. Although we are not going to see the higher percentage rates that we have in the last few years, we are still experiencing tremendous growth in California.
There is a slowing in the market, but we are continuing to receive a great financial return on real estate investments. It is also true that mortgage rates are going to continue to rise. Below is Freddie Mac’s prediction going forward through 2019:
If you are in the market to purchase a home, NOW is the time to act. As mortgage rates continue to increase and homes continue to appreciate, it would be more affordable to realize your dreams of homeownership as soon as possible!
Summary: Homes are projected to continue to appreciate in value for at least the next five years. If you are in the market to buy a home, now would be the time to act since mortgage rates are