Appreciation of Home prices are expected to slow down but not very soon…

Many of my clients who missed the boat on buying homes are now cribbing about it. They keep asking when will the prices going to stabilize or any chances of going down. I told them that it doesn’t look any slowdown is happening very soon. Especially around Houston, there doesn’t seems to be any signal of price stabilization or dropping for that matter. Let see what the experts are saying…

Home values are expected to appreciate by 4.4 percent on average through the end of the year, but that rate will slow to 3.8 percent in 2015 and 3.4 percent in 2016, say 106 economists, real estate experts, and investment and market strategists surveyed by Pulsenomics LLC.

After a sharp double-digit percentage increase in home values last year, the rollback in appreciation would put them more on par with historical norms. Prior to the housing bubble years of 1987 to 1999, home values averaged 3.6 percent growth per year.

The majority of economists surveyed say they expect median home values to exceed their pre-recession peaks by the first quarter of 2018. They cited the following as the most common concerns for declining housing affordability: income growth (28%); abnormally high rates of home-price and rent appreciation (27%), and an abnormally low supply of homes for sale or rent (21 percent).

“Time will tell whether Washington’s unfolding plan to expand mortgage credit will have a durable, positive impact on home values, housing confidence, and market expectations,” says Terry Loebs, founder of Pulsenomics.


Due to the job growth and families moving from out of states, there is an unprecedented amount of demand for housing and sellers/builders are taking advantage of it. Because of that, there is pricing war happens for houses in good community as the inventory is so low. Hope that inventory will go up but doubtful as many houses don’t even show up in the listing before pending status. Deals happens even getting to the MLS. We have to wait and watch and predict to see how it’s going to go in and around Houston area. But as of now, I don’t see any end for the home prices appreciation…

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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