Analysts Predict Higher House Prices This Year And Next

February 23, 2017

Rising mortgage rates, home price appreciation, and low levels of inventory will all contribute to increasing house prices over the next few years, according to a recent Reuters survey of 30 housing industry analysts.

The S&P/Case-Shiller composite index indicated that prices are expected to increase 4.9 percent this year and 4 percent in 2018.

Respondents to the survey also said that buyer demand is strong, the labor market is improving, and housing shortages remain a major issue. Most importantly, the experts said that deregulation plans that are being considered by the Trump Administration are not only unnecessary, but could cause another housing crash.

"Moving to ease back on those regulations now, when the market is already recovering and house prices are rising, would only increase the risk of another dangerous bubble forming," said Capital Economics property economist Matthew Pointon.

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