In James Hagerty’s article Wealthy Families See Home Values Climbing Further [WSJ] , most wealthy people expect home prices to continue rising over the next five years according to a PNC Financial survey.
- 65% expect at least 10% increases
- 31% expect at least 20% increases
- 7% expect a decline
Wealthy was defined as making at least $150k annually and have $500k available for investing.
Regions saw disparity in results
* New Englanders were the most cautious about housing. Only 10% expected a rise of more than 20% over five years, and 18% predicted a decline.
* Floridians were the most optimistic. 50% expected an increase of more than 20%.
“Dean Baker, a Washington economist who is a longstanding bear on home prices, said the survey shows many people are unrealistic about the outlook. Mr. Baker, co-director of the Center for Economic and Policy Research, noted that interest rates are rising, income growth is slow, and “we’re building homes faster than we ever did before.” Even so, Mr. Baker said, “this bubble has gone on way longer than I expected.””