Home Prices Expected To Rise Due To High Demand And Inventory Shortage

May 31, 2017

A recent poll from Reuters indicated that U.S. home prices are expected to continue to rise over the next few years.

A shortage of available houses mixed with rising demand (particularly from home-ready Millennials and downsizing Baby Boomers) will fuel the price hikes.

A majority of the respondents to the poll said that the Trump administration should pursue some form of housing market deregulation.

Even without stimulus, U.S. home prices are likely to rise at almost double the current rate of underlying consumer prices and wages, according to the latest Reuters poll of around 40 property market analysts and economists.

Also, the average 30-year mortgage rate is expected to be 4.25 percent this year and 4.60 percent next year.

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