Researchers say that there is a one-in-ten chance that the U.S. will experience a 20 percent drop in real prices within the next five years.
According to a new study from JPMorgan, CNBC reports that a dramatic decline in home prices is unlikely, even as real estate values in the U.S. have surged 29 percent since 2000.
The median house price jumped 6.5 percent from a year ago to an all-time high of $263,800 in June, the NAHB reported. This was the 64th straight month of year-on-year price increases.
For comparison, Canada has a 20 percent chance of a significant price decline over the next five years. Canadian home prices up 138 percent since 2000, and 95 percent since 2006.
Advertisement
Related Stories
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady
Economics
NAHB CEO Tobin Says 'Housing Renaissance' on the Horizon
Responding to positive housing-related data such as falling mortgage rates and increased homebuyer activity, NAHB's CEO Jim Tobin is optimistic