Prediction #7 in my "Great Logging Off" market
Blog post:
https://www.fortressofdoors.com/ai-markets-for-lemons-and-the-great-logging-off
This resolves YES, if, by the end of 2027, this FRED graph shows a value that is 25% higher (1.25x) than it was in Q3 2022 ($542,900), or $678,625.
https://fred.stlouisfed.org/series/ASPUS
For context, 5 years ago, Q3 of 2017, the value was $373,200. We've seen a 1.45X growth since then.
Predicting a 25% increase in Real Estate prices by 2027 is a bold claim, but it’s not impossible given the housing demand in certain markets. Factors like low inventory, growing urban populations, and rising construction costs could push prices higher, especially in hotspots. However, economic factors like interest rates or policy changes might cool the growth. I’ve noticed on platforms like Rent Cafe how rental prices are also climbing, which often mirrors trends in the home-buying market.
My reasoning: the FED will likely drop interest rates under political pressure and Congress will keep on borrowing money to stimulate the economy. We'll once again get the doubly whammy of inflation plus low interest rates driving demand plus failure to deal with zoning regulations.