Home Price Expectations
A decade after the worst of the housing bust, and after years of well-above-average home value growth, the housing market has yet to emerge from the shadow of the Great Recession. And by most accounts home values will, for years to come, continue to be below what might have been.
On average, respondents said they expected home values to gain 4.8 percent in 2018, with annual appreciation slowing to 3.7 percent in 2019 and to 2.7 percent by 2021 before accelerating somewhat to 2.8 percent annual growth by 2022. Panelists said they expect bottom-third, entry-level home values to grow 6 percent in 2018, down from 8.5 percent annual growth currently but still double the expected pace of top-third annual home value growth (expected to be 3 percent in 2018, down from 3.6 percent currently).