Economist for NAR sees prices going up 5% a year, but other analysts are less optimistic. Some of the increase is likely to be inflation, no matter who's counting.
Not only is the housing recovery well under way, the median home value will rise 15% in the next three years, or at least that’s the view of the National Association of Realtors’ chief economist.
"Existing-home sales, new-home sales and housing starts are all recording notable gains this year in contrast with suppressed activity in the previous four years, and all of the major home-price measures are showing sustained increases," Lawrence Yun told attendees at the 2012 Realtors Conference and Expo in Orlando, Fla.
"Real estate will be a hedge against inflation, with values rising 15% cumulatively over the next three years, also meaning there will be fewer upside-down homeowners."