The new issue of Barron’s has a pretty bullish message about home prices.”A number of forecasters predict home-price increases around 10% or so nationally over the next three years, with some metropolitan statistical areas, such as Midland, Texas, and Bismarck, N.D., likely riding the energy-exploration boom to better than 20% jumps in residential-real-estate prices,” writes Jonathan Laing.
Experts he consulted with include Moody’s Mark Zandi and the National Association of Realtors’ Laurence Yun.
Laing’s quote from S&P’s David Blitzer sums up the message:
“This increase in home prices, unlike the one that occurred in 2009-2010 as a result of the temporary tax credit for first-time home buyers, looks to be for real,” says David Blitzer, chairman of the index committee at S&P Dow Jones Indices. “We probably won’t see a V-shaped recovery in housing, with prices overall going up 20% in the next year. But this rally has legs, and prices will definitely be higher next year.”
Read more at Barrons.com.
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