Many people are wondering if we’re in real estate bubble and if it’s going to burst. I wish I my Magic 8-Ball could give us the answers we all want to hear.
There is a company called CoreLogic that collects data on a nationwide basis and makes forecast reports. They recently reported that home prices rose 7.2% from December 2015 to December 2016 on a nationwide basis. They are also forecasting another increase of 4.7% for 2017 nationwide. As with any other economic forecast, only time will tell if this prediction proves accurate or not.
This map shows their state by state forecast. Notice that California is leading the growth with a forecast of 8.9% for 2017. The green colored states represent states that have forecasts that are 20% higher than the national average of 4.3%. The brown colored states represent states that have forecasts that are 20% lower than the national average of 4.3%.
Of course, these are just state and national averages. Every neighborhood behaves as a micro-market and you really need to consult a hyper-local neighborhood expert to find out what’s happening in your community at any given moment in time.