A Reuters poll of 24 analysts predicts U.S. home prices are likely to rise 5 percent this year. In 2015, home prices also gained 5 percent, despite everyone expecting a Fed interest rate hike, according to the S&P/Case Shiller composite index of prices in 20 major metropolitan areas.
The Fed raised short-term interest rates for the first time in nearly a decade in December of last year. This caused concern for many in the real estate industry. However, many – including myself – saw it as a positive, necessary step to deter inflation.
Even with the possibility of a U.S. economic slowdown, the Reuters analysts felt that the housing recovery is sustainable in the U.S. and should continue at a moderate rate through the next couple of years.
The poll suggested the following appreciation rates in the years following 2016:
- In 2017, home prices are anticipated to rise 4.0 percent.
- In 2018, home prices are anticipated to rise 3.5 percent.
Where do you think home prices will go in 2016? Leave a comment below.