REALTORS® overall expect home prices to rise 3.5 percent over the next 12 months, according to the August 2015 REALTORS® Confidence Index Survey, which is based on the responses of a monthly survey to more than 50,000 real estate professionals.
Washington, Oregon, Colorado, and Georgia real estate professionals expect median price growth to be 4 to 5 percent – the next highest expectations across the country.
REALTORS® surveyed by NAR say that sharp price increases in recent months have made homes unaffordable for many potential home buyers and that they expect prices to moderate in the coming weeks.
The median price of all existing homes sold in the U.S. as of July was $234,000, a 6 percent increase on an annual basis. Home prices have risen at a faster pace than annual growth in median household income of 2 percent since 2010, according to NAR’s report.
“Strong demand amid tight supply has pushed up prices,” according to NAR’s report. “While rising prices are lifting homeowners out of negative equity, the strong price recovery amid the modest growth in incomes is also making homes less affordable and dampening demand.”
Source: “REALTORS® Expect Price Growth Moderate in Next 12 Months,” National Association of REALTORS® Economists’ Outlook blog (Oct. 5, 2015)