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Fed agency sees home prices rising 3 percent annually

March 7, 2013 @ 9:38 am

Home prices are expected to continue their trajectory upward, projected to rise 3.7 percent between the third quarters of 2013 and 2014, according to Fiserv, which used data from the Federal Housing Finance Agency for its projection.

Following the third quarter of 2014, Fiserv predicts home prices to rise an average of 3.3 percent annually over the next three years.

"Although some recent real estate activity has been speculative, it seems as if buyers have more realistic expectations about housing market returns after having lived through the largest housing market crash in U.S. history," said David Stiff, Fiserv's chief economist. "Last year was the first year since 1997 that the housing market has resembled something recognizable as normal. For the past 15 years, home-price changes and sales volumes have either been boosted by a bubble mentality or crushed by crash psychology."

In 1997, home prices grew at a 3 percent rate, Stiff said, but from 1998 to 2006, prices started soaring above 5 percent and even saw double-digit increases in some of those years.

By the end of 2013, Fiserv expects that home prices will increase in nearly every U.S. metro area, while some markets may see short-term double-digit price increases.

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Comments (3)


  • Add A Comment

  • New Mariner wrote...
    Bubble Again
    March 8, 2013 4:46 am
    With Big Ben printing funny money for the forseable future prices have no where to go but up. Right until the bubble bursts again. Prices in Phoenix are already back at the levels they were in 2006-7 when the market blew up thanks to real estate funds buying up all the low end foreclosures so they can be rented to those who lost the houses in the first place .
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • SickofSeattleite wrote...
    so ...in 30 years
    March 12, 2013 5:34 am
    we will all break even.... that's nice.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • shark75 wrote...
    It only took Oblamo 6 years
    March 12, 2013 8:09 am
    While most all recessions fix themselves in 2 years. Nice work you stupid commie.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • { "Thumbs Up":"1","Thumbs Down":"-1" }