According to Deutsche Bank, US home prices are expected to jump 21.5% over the next three years.
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
http://www.investinpcutah.com/
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