Tuesday, April 23, 2013

Bank of America Increases forecasts Gain in House Price

U.S. house prices are likely to rise

8 percent this year, up from a previous estimate of 4.7

percent increase, according to Bank of America Corp. (BAC) interest rates are low, tight inventory properties for

affordability record sales and price triggers accelerated

income, Michelle Meyer, Bank of America U.S. economists, and

Chris Flanagan and Justin Borst, mortgage-backed securities

strategy, said in a note to investors titled "have said

house party ""? We believe that the positive feedback is started, which

increase in the price of fuel expectations of further appreciation

and easing of credit conditions, which stimulates

homebuying, "they said in a report dated yesterday. "It's

strong positive relationship, especially in this neighborhood

of historically low interest rates and the Federal Reserve

determined to remain accommodative policy "began. House prices rose last year after the worst housing

crash since the Great Depression as lowering unemployment life

Mortgage rates fell to a record low and shrinking pond

list of trigger competition among buyers. Price last year

rose 7.3 percent, according to Bank of America reports. "Housing inventory continued to decline, indicating that

supply of homes on the market for sale undershooting

demand, "wrote Flanagan, Meyer and Borst. "It goes back to

pace during the housing bubble. Unlike foam, the reason

to reduce the surge in demand but not meet

finance subpar. "New House Rising demand sparked a resurgence of new home sales,

reached the lowest point in 50 years in 2011. Sales of new homes rose in

437,000 annual pace in January, the highest level since July

2008, according to the Commerce Department. Single-family first

rose to 613,000 in January, the most in more than four years.

Starts will total about 650,000 this year, about half the length

The term "normal" pace of 1.3 million, according to the National

Association of Home Builders. Increasing house prices will moderate to 6.5 percent in 2014 -

changed from the previous estimate of 7.7 percent increase -

then 3.7 percent in 2015 and 1.7 percent in 2016, according to

Bank of America reports. "Our forecast now assumes a rapid appreciation in the short-term,

but slower growth in the years to come, "Flanagan, Meyer and Borst

writing. "Our forecast for aggregate values

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