The Federal Reserve Housing Survey released today shows that the expected appreciation rate for a home in the U.S. for 2015 is 4.4%. That’s not super stellar, but it does still show that prices are still rising. I am seeing many deals now sell for above the asking price. What does that have to do with the above picture? Those individuals who want to move into a bigger home (or want to get back into the housing market at all) but are waiting for the right opportunity are going to find it more and more difficult as prices continue to increase–to say nothing of rising interest rates.
To drive the point home, though home prices are up, the latest report out today show that out nation’s Gross Domestic Product dropped 0.7% last quarter. Just as it’s been over the last 40 years, home prices have outpaced inflation by a factor of two.