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

October 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: UCLA Anderson Forecast Predicts Soft but Turbulent Landing for National Economy

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

Related Stories

Mortgage defaults at lowest levels in five years

December 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

January 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

Just how good (or bad) is the fossil record of dinosaurs?

August 28, 2015

Everyone is excited by discoveries of new dinosaurs – or indeed any new fossil species. But a key question for palaeontologists is 'just how good is the fossil record?' Do we know fifty per cent of the species of dinosaurs ...

Fractals patterns in a drummer's music

August 28, 2015

Fractal patterns are profoundly human – at least in music. This is one of the findings of a team headed by researchers from the Max Planck Institute for Dynamics and Self-Organization in Göttingen and Harvard University ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.