Many of the questions currently surrounding the real estate industry focus on home prices and where they are heading. The most recent Home Price Expectation Survey (HPES) helps target these projected answers.
The average annual appreciation will be 3.2% over the next 5 years
The cumulative appreciation will be 16.8% by 2023
Even experts representing the most “bearish” quartile of the survey project a cumulative appreciation of over 6.7% by 2023
What does this mean for you?
A substantial portion of family wealth comes from home equity. As the value of a family’s home (an asset) increases, so does their equity.
Using the projections from the HPES, here is a look at the potential equity a family could earn over the next five years if they purchased a $250,000 home in January of 2019:Based on gains in home equity, their family wealth could increase by $42,000 over that five-year period.
If you don’t yet own a home, now may be the time to purchase. Owning or moving up to your dream home could allow you to ride the increase in equity of a growing asset.
Call The Belt Team and talk to one of our buyer specialists about the market in our area and buying your next home! 703-242-3975
Home Price Expectation survey – Every quarter, Pulsenomics surveys a distinguished panel of over 100 economists, investment strategists, and housing market analysts regarding their 5-year expectations for future home prices in the United States.
“Keeping Current Matters” has provided us with some excellent information about where home values are headed. Whether you’re thinking of buying or selling a home in Northern VA – you’ll want to check what they had to say:
“Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.
Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.
The results of their latest survey
Home values will appreciate by 4.1% in 2015.
The cumulative appreciation will be 18.1% by 2019.
That means the average annual appreciation will be 3.4% over the next 5 years.
Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 10.5% by 2019.
Individual opinions make headlines. We believe the survey is a fairer depiction of future values.”
———————————————————————————————————————————–In addition to the info from Pulsenomics, we also know the government has indicated it likely that interest rates will rise. In fact, we have seen the FHLMC 30 year rate rise already from 3.84% in May to 4% in June and 4.09% in July. In light of the urgency to buy now, we are holding a special MILLENNIAL EDITION of our “Kiss Your Landlord Goodbye” Seminar.
Today is a great time to enter the real estate market! Why throw money away on rent when you can be your own landlord? Freedom rocks. And so does putting money in your OWN pocket instead of your landlord’s!
Mortgage rates are low (for now!) and you may even be able to pay less by owning than renting. Not sure how the process works? We’ve gathered these local experts to share their knowledge with you:
Aaron Gagnon, Loan Officer, Apple Federal Credit Union
Brad Pace, Loan Officer, EverBank
Chris Melnick, Owner, Double Eagle Title
Several local millennials who recently bought their first home
The Belt Team, nationally recognized Top 100 Team with Keller Williams Realty
Next Class Scheduled: Sept 30th 6:30-8PM in McLean
First quarter statistics have been released. In most areas the number of homes sold in the first quarter of 2014 was down compared to first quarter 2013. However, in most areas, prices rose. Only 3 areas saw an increase in home sales: Dunn Loring, Centreville & Springfield. In every other Northern Virginia city, home sales declined year over year. On the other hand, prices were up in all cities except three: Ashburn, Great Falls & McLean. The other areas saw average prices rise from 2.1% to 10.2%. (See chart below for sales & prices in each city.)
Call (703) 242-3975 if you would like a zip code or neighborhood analysis.