The Los Angeles Times released a poll today, and the results are a bit troubling.
They asked a bunch of people, how much will your home’s value appreciate over the next three years.
49% of respondents replied: 5%-15%
19% of respondents replied: 16%-30%
6% of respondents replied: 31% or more
5% of respondents replied: will not appreciate
9% of respondents didn’t know what they thought
Okay, that’s a bit too optimistic. For one thing, prices this year, if they appreciate at all, will come back down, and stagnate, where they are now.
In the following two years, I think you’ll only see increases a bit higher than the rate of inflation – home prices going up by maybe 3% per year.
The 19 percent of respondents who think prices will increase more than 15% are in for a big disappointment, and the 6 percent of respondents who expect an increase of 31% or more are completely out of touch with reality.
I mean, really.
Complete article: Homeowners Expect Prices to Keep Rising – By Tom Petruno and Kathy M. Kristof, The Los Angeles Times