As stated yesterday, even though sales are up, prices are not yet increasing.

So what can we expect of home prices over the next five years? 

I believe we will start to see an increase in prices this year (perhaps 1%) and then we may see a more ambitious (2% - 3%) increase for the next few years after that. 

Bear in mind that depending on the timeframe you examine (see the bottom of this post) the median home value increases around 5% per year.

The matrix above shows that a $250K home would (potentially) increase to a value of $289K over the next five years if we see an average of 3% appreciation per year over the next five years.

Click here to download the table above as an Excel file to plug in your own variables.


National median home values increased 5.94% per year between 1960 and 2000.
National median home values increased 6.72% per year between 1970 and 2000.
National median home values increased 4.76% per year between 1980 and 2000.