92% of REALTORS® Expect Prices to Increase in Next 12 Months

Prices are still expected to generally increase, although at a slower pace. About 92 percent of REALTOR® respondents expect constant or higher prices in the next 12 months (90 percent in November). Prices are expected to increase modestly at a median expected price increase of 3.7 percent [1]. Local conditions vary. See the December REALTORS® Confidence Index Survey report for more information.

Improved inventory conditions, lower volume of distressed sales, and the pick up in interest rates are factors that will create an environment for modest price growth. Some REALTORS® saw the slowdown as a welcome break to the rapid home price growth amid the modest growth in consumer incomes and jobs.

[1] The median expected price change is the value such that 50 percent of respondents expect prices to change above this value and 50 percent of respondents expect prices to change below this value.

Jed Smith, Managing Director, Quantitative Research

Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.

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Comments
  1. Slight increase but the condition of property still weighs heavy. It is still price , location and condition will always rule with most properties. There are always exceptions ! !