Predicting the future is approached by looking at the past. History always repeats itself and that is why we study the past.

Using historical data from Freddie Mac we know that since 1975 the average five-year return on home prices has been +26%.

So a $600,000 home today could be worth $756,000 in five years using this historical data.

The home you buy will also depend on where you buy it. California average five-year return was 34% where as Oklahoma was 14%.