Home for sale: U.S. house prices continue to climb

Oct 11, 2012
Home for sale: U.S. house prices continue to climb

National home prices will rise as much as 22 percent in the next five years, says a professor at the University of Michigan's Ross School of Business.

Under current , commonly used house price indices, like the Case-Shiller 10, Case-Shiller 20 and UFA 100, will increase between 8.5 percent and 22 percent cumulatively by 2017, says Dennis Capozza, U-M professor of finance and real estate and a founding principal of University Financial Associates, a risk-management firm that forecasts mortgage and consumer loan performance.

UFA's newly released five-year nominal house price forecast for the third quarter of 2012 shows that will continue to rise for the UFA 100, a broad based composite index of 100 U.S. cities—although recovery will be slow for the larger metro areas in the Case-Shiller 10 city composite.

"UFA's nominal, five-year house price forecasts are solidly positive at both the state and metro area levels," said Capozza, the Dykema Professor of . "This confirms that for lenders, homebuyers and investors in the residential real estate and mortgage markets it is once again safe in most to go back in the water."

Explore further: Money talks when it comes to acceptability of 'sin' companies, study reveals

More information: Dennis Capozza: www.bus.umich.edu/FacultyBios/… Bio.asp?id=000119678

add to favorites email to friend print save as pdf

Related Stories

Mortgage defaults at lowest levels in five years

Dec 23, 2010

(PhysOrg.com) -- Default risk on home loans fell once again this quarter to its lowest level in more than five years, says a professor at the University of Michigan's Ross School of Business.

New mortgage design would minimize home foreclosures

Jan 19, 2011

With mortgage loan defaults on the rise yet again, two mortgage researchers are proposing a new type of mortgage contract that automatically resets the balance and the monthly payment based on the mortgaged home's market ...

Recommended for you

Rural loss and ruin can be avoided

6 minutes ago

An Australian Reconstruction Development Board needs to be established to help avoid more needless forcing of Australian farmers from their land, a QUT economist has said.

Narcissistic CEOs and financial performance

Jul 24, 2014

Narcissism, considered by some as the "dark side of the executive personality," may actually be a good thing when it comes to certain financial measures, with companies led by narcissistic CEOs outperforming those helmed ...

User comments : 0