This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Economists Expect 2012 Housing Momentum To Carry Into 2013

SEATTLE, Dec. 26, 2012 /PRNewswire/ -- A nationwide panel of more than 100 professional forecasters expects home prices to rise 3.1 percent in 2013 after finishing 2012 up more than 4.6 percent, reflecting growing optimism in the housing market, according to the December 2012 Zillow® Home Price Expectations Survey.

The survey of 105 economists, real estate experts and investment and market strategists was sponsored by leading real estate information marketplace Zillow, Inc. (NASDAQ: Z) and conducted by Pulsenomics LLC. It is based on the projected path of the S&P/Case-Shiller® U.S. National Home Price Index during the coming five years.

Survey respondents said they expect home prices to increase in full-year 2012 by 4.6 percent, up from their more modest forecast of 2.3 percent in the September 2012 survey. Respondents also indicated they expect home prices to rise 3.1 percent in 2013, up from an expectation of 2.4 percent in September, and by more than 3 percent annually through 2017.

"An organic recovery in the housing market really took hold in the latter half of 2012, and this improvement is echoed in some of the most optimistic price projections we've seen in years from this group," said Zillow Chief Economist Dr. Stan Humphries. "Record levels of affordability and an improving overall economic picture have really helped buoy the market and have us well positioned for continued growth, albeit slightly slower, in 2013 and beyond."

The most optimistic i quartile of panelists predicts a 6.3 percent increase in 2012, on average, while the most pessimistic ii predicts an average increase of 3 percent. For 2013, price change projections range from 4.9 percent among the most optimistic quartile to 0.8 percent among the most pessimistic, on average.

Mortgage Interest Deduction Would Negatively Impact High-End Home Prices

Changes to the mortgage interest deduction (MID) may be a key element of a fiscal cliff "grand bargain," so the panel was asked to gauge how certain proposed MID changes would impact home prices in both the near and long term.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs