Home Prices Have Appreciated 6.9% in 2018
Between 1987 and 1999, which is often referred to as the ‘Pre-Bubble Period,’ home prices grew at an average of 3.6% according to the Home Price Expectation Survey.
Every month, the economists at CoreLogic release the results of their Home Price Insights Report, which includes the actual year-over-year change in prices across the country and their predictions for the following year.
The chart below shows the forecasted year-over-year prices for 2018 (predictions made in 2017). According to their predictions, the average appreciation over the course of 2018 should be 4.8%, which is still greater than the ‘normal’ appreciation of 3.6%.
If we layer in the actual price appreciation that has occurred this year, we can see that over the course of 2018, home prices have appreciated by an average of 6.9% and have outpaced projections all year!
What does this mean?
The tale of today’s real estate market is one of low inventory, high demand, and rising prices. The forces at work can be simply explained with the theory of supply and demand. That being said, if a large supply of inventory were to come to the market, prices may start to appreciate closer to the forecasted rate which would STILL be greater than the historic norm!
Bottom Line
If you are a homeowner whose house no longer meets your needs, now may be a great time to list your home and capitalize on the equity you have gained over the last year to make a significant down payment on your next home!
SOURCE: Simplifying the Market
ABOUT ERIC MATZ:
As a professional Realtor, Eric’s commitment is to always represent the client’s best interest. He uses his extensive experience to secure top dollar for sellers and personally guide them through the transaction. Eric works with a wonderful team who devote themselves to serving the needs of their clients before, during and after the move.
Eric’s business is built on repeat clients and their referrals. He wants to earn their respect, so he makes a constant effort to improve the level of service he provides. Eric is a relationship builder and prides himself on being the trusted advisor for so many homeowners.
Whether you are buying or selling your next (or first) home, Eric is ready to help. Eric knows Poway well, as it’s the place where he grew up and raised his own family. Having been a lifelong San Diego resident, he is knowledgeable about most areas of the county and can assist with a home sale from the coast to the inland areas. When you’re ready to buy or sell, give Eric a call, he looks forward to earning your business and be your Realtor for life!
You can contact Eric at (619)733-8087 | [email protected]