Good News! Over 100 experts comprised of real estate experts, investment strategists and economists predict that housing prices will increase through 2016. It has been a long 5 years since the real estate bubble burst.
In an article that came out today by Maureen Maitland, Vice- President of S&P Dow Jones Indices, condo prices have gone up 4 straight months in a row in all five of the metro areas covered by their indices – Boston, Chicago, Los Angeles, New York and San Francisco. It would have been the fifth had Chicago prices not fallen by 0.3% in March. All five cities saw increases in both condo and existing home prices in each of April through July.
Over the Summer the Phoenix, Arizona market saw a burst of activity with sales up over 1st quarter of the year. Many buyers were discouraged as they bid on multiple homes but with 10-15 other offers on the table, they walked away with nothing. Home builders profited from the bidding wars in the resale market as many buyers gave up bidding on resale homes and decided to buy a new home. New home builders experienced a large surge in buyer activity and housing prices. We just hope it continues!
The survey, conducted by research and consulting firm Pulsenomics LLC on behalf of real estate search and valuation portal Zillow between Aug. 30-Sept. 14, 2012, asked 113 participants to project the path of the S&P/Case-Shiller U.S. National Home Price Index over the next five years.
The latest S&P/Case-Shiller Home Price Indices, which include data through June, show national home prices up 1.2 percent from a year ago during the second quarter. All of the markets in the S&P/Case-Shiller 20-city composite posted annual gains for the second month in a row, and all but two — Charlotte and Dallas — posted better annual returns in June compared to May.
This quarter’s survey results show optimism has increased among the participants, who in the second quarter had predicted a 0.4 percent dip in home prices this year, followed by modest increases starting in 2013 and through 2016.
Economists now forecast home prices will rise 2.3 percent in 2012 from fourth-quarter 2011, and see further cumulative rises of 4.7 percent in 2013, 8 percent in 2014, 11.4 percent in 2015, and 15.2 percent in 2016.