logo
  Join        Login             Stock Quote

Economists Predict 2012 Housing Momentum To Carry Into 2013

 December 26, 2012 01:44 PM


(By Balaseshan) A panel of 105 economists predict 2012 housing momentum to carry into 2013 based on the projected path of the S&P/Case-Shiller U.S. National Home Price Index during the coming five years, according to the December 2012 Zillow Home Price Expectations Survey.

The panel expect home prices to rise in full-year 2012 by 4.6%, up from their more modest forecast of 2.3% in the September 2012 survey.

The economists also project home prices to rise 3.1% in 2013, up from an expectation of 2.4% in September, and by more than 3% annually through 2017. This reflects growing optimism in the housing market.

The survey of 105 economists, real estate experts and investment and market strategists was sponsored by Zillow Inc. (NASDAQ: Z) and conducted by Pulsenomics LLC.

[Related -Zillow Inc (Z) Q1 Earnings Preview: Investing For Tomorrow, but Beat Up Today?]

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

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.

Majority of respondents indicated prices would not be negatively affected with 55% of respondents saying there will be little to no near-term impact on overall home prices if reducing the maximum MID-eligible mortgage amount to $500,000 and eliminating the allowance for second homes.

[Related -Can Twitter Inc (TWTR) Fix The MAU Issue?]

According to the survey, eliminating the MID entirely over a period of several years was expected to have the biggest negative impact on high-end home prices over the long-term, with 70%t of respondents saying they expected such prices to fall moderately or significantly under such a scenario.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChipotle Mexican Grill, Inc. (CMG) Q2 Earnings Preview: Will Higher Traffic Offset Higher Costs the Key

Chipotle Mexican Grill, Inc. (NYSE:CMG) will host a conference call to discuss second quarter 2014 read on...

article imageNetflix, Inc. (NFLX) Q2 Earnings Preview: The Ruby Month for a Reason

Netflix, Inc. (NASDAQ:NFLX) will post its second-quarter 2014 financial results and business outlook on its read on...

article imageLadenburg Thalmann Financial Services (NYSEMKT:LTS): Heavy, Durable Insider Buying

Ahh, but any worries over price levels didn’t stop multiple insiders at Ladenburg Thalmann Financial read on...

article imageInternational Business Machines Corp. (IBM) Q2 Earnings Preview: Small Beat and Pop

International Business Machines Corp. (NYSE:IBM) will host a conference call Wednesday, Jul. 16, 2014 at read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.