Economists Making Bold Statements about Home Prices

“Home values could surge 35% without stretching housing affordability.”

 

Household wealth in the U.S. has climbed in the fourth quarter to the highest level in five years. Good news is abounding. Household wealth is approaching pre-recession levels and that, in conjunction with the Federal Reserve pushing to keep lending rates low, consumer confidence is surging. “Growing wealth puts households in a better position,” said Paul Edelstein, director of financial economics at IHS Global Insight in Lexington, Massachusetts. “They’ve acquired a lot of financial assets, and that’s a positive for spending.”

The housing market is surely making its way to recovery. Single family home prices have risen in 88% of U.S. cities. Making claims that home values is predicted to surge seems to be substantiated based upon all the evidence. "During the peak of the housing run-up, affordability was stretched as the market sold off," Dosaj, vice president of the home price index at LPS Applied Analytics, said. "As home prices dropped, affordability dropped." (http://realtormag.realtor.org/daily-news/2013/03/01/economist-makes-bold-statement-home-prices?om_rid=AACuz5&om_mid=_BRMNeLB8xIsqgB&om_ntype=RMODaily)

 

 

 

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Comment balloon 5 commentsHart Real Estate Solutions • March 08 2013 08:35AM

Comments

"Single family home prices have risen 88% in most U.S. cities."


WHAT??????

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) almost 6 years ago

You are the expert, the real estate economist in your area where everything is local. We don't need more ivy league predictions that don't take into account all the real estate market nuances that happen. Like weather forecasts that don't work in every single market. The buyers and sellers want the specifics for their market, not one size fits all. It does not.

Posted by Andrew Mooers | 207.532.6573, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) almost 6 years ago

The uptick always begins, it seems, in entry level priced residential...I always feel that undeveloped land is the last to rise in sales volume, and when it does, it really indicates an authentic recovery...in my area, am now seeing raw land sales.   Really good news!

Posted by Li Read, Caring expertise...knowledge for you! (Sea to Sky Premier Properties (Salt Spring)) almost 6 years ago

What are these statistics based on?  Rather unbelievable..........

Posted by Roger D. Mucci, Lets shake things up at your home today! (Shaken...with a Twist 216.633.2092) almost 6 years ago

Unbelievable for sure. Here is the data if you want to take a look for yourself: 

http://realtormag.realtor.org/daily-news/2013/03/01/economist-makes-bold-statement-home-prices?om_rid=AACuz5&om_mid=_BRMNeLB8xIsqgB&om_ntype=RMODaily

http://realtormag.realtor.org/daily-news/2013/02/12/88-us-cities-see-housing-price-gains

Thanks for the comments!

Posted by Hart Real Estate Solutions, Broker/Owner (Hart Real Estate Solutions) almost 6 years ago

Participate