Firm Forecasts 8% Increase in Prices: The pace at which home prices are rising should moderate later this year, with home prices forecast to rise by 8 percent this year then increase by another 4 percent in 2014, according to an analysis from Capital Economics.
Although the research firm agrees with analysts who have warned recent home price gains are not sustainable, housing bubble concerns were described as “premature.”
In the firm’s housing report for Q2, economists Ed Stansfield and Paul Diggle wrote, “[t]he bottom line is that valuation and affordability metrics suggest that house prices can rise considerably further before we need to begin worrying about another housing bubble forming.” See Why more Sellers Could Test Favorable Market!
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