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

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."


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More information: Dennis Capozza: www.bus.umich.edu/FacultyBios/ … Bio.asp?id=000119678
Citation: Home for sale: U.S. house prices continue to climb (2012, October 11) retrieved 16 July 2019 from https://phys.org/news/2012-10-home-sale-house-prices-climb.html
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