U.S. Unlikely To Suffer A Sharp Price Correction

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.

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