Show me an expert who claims to know an accurate answer, and I’ll show you a BS Master.
If we’re talking about real estate . . . about the closest we can come to a rational answer to this “What’ll this house worth in 5 years?” question is to do some math based on Historical trends.
Since the beginning of recorded real estate values nationwide, house values have (on the average) increased @ 3% per year. That number comes from 60+ years of good times and bad times, and any given 5 year period could be RADICALLY different than 3%/year.
But you asked, so 3%/year is gonna be my guestimate.
Are you invested in the stock market? If so, have you asked your Stock Broker and/or Financial adviser to tell you when the value of your portfolio might stop falling and begin rising back to where it was a few months ago?
Most truthful Stock Brokers will shrug their shoulders and squirm a bit and say: “I haven’t a clue, but my advise is for you not to panic and wait this blip out . . . It’ll “correct” eventually.
Interestingly, when it comes to investments (Whether it be houses or Stocks) – What it’s worth only really matters if you’re needing to sell (liquidate) for a near term need . . . and seldom can we schedule near term needs around spikes in the values of our investments. In fact, odds are good that we are most likely to need to sell when the value is declining.
We DO want to make sound investments that have high probability of increasing in value over time, but we’ve been spoiled the past several years as many folks have been lucky enough to benefit from short term gains.
I tend to answer this question of “Will this increase in value?” with another question:
“Will this purchase meet your wants and needs TODAY?”
Are you buying/investing this with an expectation of large, short term gain?
If so, BEWARE!
This global economy brings much uncertainty and not infrequent wild swings from highs to lows and then back to highs . . . Most every expert will advise you to stay in it for the long haul such that you can have a CHOICE as to when you sell your investments.
In my 23+ years of Selling houses, I have marveled at the increasingly “nomadic” nature of the mass of people who seldom seem to roost in the same residence for longer than 3-5 years. While this is nothing short of awesome “job security” for Real Estate Sales Professionals, I still wonder . . . why?
Have we so departed from a “settled down” way of living due to our thirst for MORE . . . a profit driven existence?
Perhaps yes, yet I will always cherish witnessing the great joy of a family closing on that “Perfect House” . . . for now!
All of the above to invite y’all to slow down enough to live in the present NOW!
(How’s that for a rambling blog post?)
Of course, I and the Vital Few REALTORS of Pareto Realty stand poised and ready to help you find that perfect NOW house here in Middle Tennessee. Just give us a holler!