Where do you see prices heading within the next 5 years? Advice?

[Sam Zawatsky]

Hello,

I currently have two rentals, and I am looking to purchase more in the coming years. Most prices that I see on the average house sales would not really work for buying and holding in my market right now, and I was wondering about your opinions on where prices will head in the coming years. Do you think that there will be a drastic price drop in large metro areas, or maybe just stagnation of prices and these recent higher prices are just the "new normal"? Personally, I do not see prices dropping by very much, but maybe just stagnating from this point on for the next 5 years or so. This is a much different scenario compared to 2008, with much more interested home buyers and investors (also large investing conglomerates), and many young professionals who are now hungry to buy starter homes. I am debating purchasing a home right now with a 3 percent down mortgage for around 250k, just for me to live in and rent out the 2 extra rooms to help pay the mortgage. None of these houses around here for sale even come close to renting out for the 1 percent rule, unfortunately. Even houses in fixer upper condition are still selling for well over what I would need for the 1 percent rule.