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US Home Prices On The Mend

By
Real Estate Agent with BHHS/Utah Properties 8528255-SA00

According to Deutsche Bank, US home prices are expected to jump 21.5% over the next three years.

upupaway_chart_1

They expect this rise to be uneven with the hardest hit markets rebounding the most but with increased prices in all 25 major metro areas covered.

Deutsche Bank is expecting the opposite of the negative feedback cycle we were seeing just a few years ago with rising prices leading to fewer delinquencies leading to higher prices, etc...

If prices rebound in this fashion, most major metro areas will reach 2006 price levels sometime in 2016.  If this prospect seems daunting consider that if prices had just risen 4% annually from 2006 they would be around 50% higher by 2016 when we will now be just approaching those same levels, effectively ending the lost decade in the US real estate market.  The same outcome price wise if home prices had just corrected sideways for 10 years, correcting the overvaluation of 2006 with time as opposed to price.

Though this is clearly just a forecast it is an encouraging one and the momentum is clearly in the right direction and shows no real signs of slowing down as we enter 2014.

I am a Realtor specializing in residential and investment real estate in the Park City and Deer Valley areas.

 

Scott Larson

Keller William Park City Real Estate

435-513-2324

scottL.parkcity@gmail.com

http://www.investinpcutah.com/

 

Comments (17)

Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Scott These is good news those who have purchased at rock bottom prices and those who are under water

Dec 09, 2013 06:54 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Scott,  Thanks for the positive information for us all here in the rain.  Hope you are having a great day.

Dec 09, 2013 07:19 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTORĀ®, EcoBroker, GREEN

I'm with you on this one. Great reporting Scott.  I fully expect this to happen in Phoenix. We're expecting a population rise.  At the height of the market we had 10,000 people moving here a month and we're slowing going back up to that.  Nice to see some good numbers!

Dec 09, 2013 08:21 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

We can hope and pray but for right now in our area we are seeing things slow.  Of course tis the season.  If we do as well in 2014 as we did in 2013 I'll be a happy camper.

Dec 09, 2013 09:02 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Scott, It is very encouraging for many parts of the country. It is so much better than a couple of years ago.

Dec 09, 2013 11:19 AM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

We hit our 2006 levels in 2013 in many Peninsula towns; nice to see other areas aren't far behind. This is a very encouraging report.

Dec 10, 2013 12:47 AM
Brad MacKenzie
Brad MacKenzie - Duxbury, MA
Turning Houses into Homes on the South Shore

The market does seem to be headed in that direction. With no unforeseen circumstances, and good, smart policy, this could become the future.

Dec 10, 2013 02:02 AM
Scott Larson
BHHS/Utah Properties - Park City, UT
Park City, Utah Real Estate News

Hannah-it is and I also believe the momentum will carry into the foreseeable future.  Just like the stock market rally has gone much longer and further than anyone anticipated, after the once or twice a century type of real estate washout we had, I believe we are still in the first inning of this new real estate bull market.

 

Will-A beautiful afternoon sitting an open house in Upper Deer Valley, thanks.  I hope you are as well.

 

Jan-as one of the hardest hit areas I think your rebound will continue to be very strong relative to the rest of the country.

 

John-if anything we are seeing continued acceleration here, albeit at a more modest pace than somewhere like Southern California, but that is what I would consider ideal.  I think you will start to pick up again nicely as seasonality starts to work in your favor again in a few months.

 

Debbie-and hoping for continuation for all of us.

 

Lottie-Very nice to hear since California tends to lead on the way up and the way down.

 

Brad-I agree and lets hope the politicians don't screw it up.

 

Dec 10, 2013 03:37 AM
Potranco Realty
Potranco Realty - San Antonio, TX
"Sold with Potranco Realty"

Scott the forecast is promising here in Austin TX, our 2014 should be another great year.

Dec 10, 2013 05:43 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Scott,

This is good news from Deutsche bank, and I think that they are right on.  The recovery in the real estate market has taken root, we think. A

Dec 10, 2013 06:57 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Scott, thanks for the optimistic report from Deutsche Bank.  I only hope that they are correct, and the price increases does not negatively impact the volume of sales

Dec 10, 2013 08:00 PM
Randy Shamburger
Movement Mortgage - Greenville, SC
FHA, VA, USDA and Conventional Mortgage Expert

Very good news and positive report! Thanks for posting.

Dec 11, 2013 12:40 AM
Scott Larson
BHHS/Utah Properties - Park City, UT
Park City, Utah Real Estate News

Bob-great to hear.  That's the great thing about active rain, it is easy to stay in tune with trends around the country.

Ron and Alexandra-I am a big believer that there is much more to come over a number of years.

Gabe-I hope so too, but for now I think higher prices will tend to bring out more listings as people come back from being under water.

Randy-thanks for stopping by and commenting.  

Dec 11, 2013 12:59 AM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Scott~ this does help our economy grow, and should benefit all homeowners & it is healthy to have a slight increase in home values over the next couple of years...

Dec 11, 2013 01:16 AM
Roy Kelley
Retired - Gaithersburg, MD

Home buyers in many markets need to be prepared for multiple contract competition. 

Have a most productive December.

Dec 12, 2013 02:56 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Thanks for sharing this great prediction Scott, let's hope they know what they are talking about.

Dec 17, 2013 12:02 PM
Scott Larson
BHHS/Utah Properties - Park City, UT
Park City, Utah Real Estate News

Jon-this bodes well for the entire economy, let's hope it plays out like this.

Roy-still not seeing a lot of that this year, but I did lose out on a sale earlier this year in a multiple situation so it is around.

Bob-A prediction is just a prediction, but the momentum is there for sure.

 

Dec 18, 2013 02:58 AM