US Home Prices To Rise?
According to new forecasts, U.S. Home Prices are going to increase by 4% a year for the next 5 years, starting with a stabilization by the end of the summer. The expectation is that certain places will see a quick rise and then balance out while other areas will see a slower increase in home prices. This information is derived from price indexes of leading homes.
It is expected that investors will be major players in this increase. This is based on the fact that already in places like Phoenix and Las Vegas investors are buying homes quickly. This will lead to first time buyers and current homeowners buying new homes.
By the end of summer, Fiserv, a market watcher company, believes that the bottom out rate will be 35% lower than the highest priced homes in 2006.
Will U.S. Home Prices Rise?
For the first time since last July, U.S. Home Prices saw an increase in price of 0.6% from the months of February through March. This information is provided by CoreLogic, an independent market research company. These trends are due to affordable housing and fewer houses being on the market.
David Stiff, a Fiserv economist announced that only 12% of median family incomes equated to conventional mortgage payments. This is down from the typical 20%
In conjunction with Moody’s Analytics, Fiserv forecasts that the areas that saw the largest amounts of foreclosures will see the highest spikes in property value. This information is based on the assumption that there will be no further economic issues and that the job market will improve.
Prices are expected to rise most in 6 of 10 markets where there were property value losses of more than 50%. For example, Las Vegas is 61% from its former best in 2006.
Florida is said to be seeing a strong increase in property sales according to Realtor.com. The real estate market is assessed every quarter on this company’s website, which is where they garner their information about U.S. Home Prices.
Realtor.com also says that in areas like Phoenix and Miami, there has been a 40% decrease in inventories. In addition to these two cities, Orlando has had the best turnaround when it comes to improvements in the market.
The economy is a major player in the current market. The question is, do you think that market is rebounding, or do we still have a ways to go?
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