Brought to you by
KIRO Radio's Tom Kelly digs deep into the Puget Sound real estate market
Real Estate

Positive signs spark upwardly revised predictions

Several economists have recently revised their predictions on housing values to reflect a stronger-than-expected real estate rebound.

Paul Diggle, Capital Economics' economist, upwardly revised his home price forecast from a 5 percent projection to an 8 percent rise in home prices this year.

"Prices of both new and existing homes are picking up, the latter by over 10 percent year-on-year," Diggle wrote. "Indeed, after a couple of years during which new house prices outperformed, primarily owing to builders constructing more homes for the higher-end market, we now expect existing house prices to close the gap. As more consumers are able to access mortgage credit, home builders should widen their offering, while continued investment demand will bid up existing house prices."

Ivy Zelman, an independent real estate analyst, told CNBC last week that "we're in a nirvana for housing. I'm the most bullish I've ever been." Zelman said that home prices could rise for another four to six years.

Economists at Bank of America revised their home price forecast from 4.7 percent this year to 8 percent.

Top Stories

  • Bad Idea
    The man behind a staged child abduction apologizes for scaring young kids, parents

  • Oso Clean
    An army of volunteers is making sure mudslide searchers get to put on warm, dry clothes

  • Vacation Time
    Two airlines are battling for your business and you're the winner
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Mortgage Calculator
Enter Your Details & Click the Calculate Button
Loan Amount $
Annual Interest Rate %
Term of Loan Years
Number of Payments
Monthly Payment $
Brought to you by

This is not a commitment to lend. Terms subject to change without notice. Applicant must qualify to receive credits. A division of Pinnacle Capital Mortgage Corp. WA CL 81395, Equal Housing Lender, MLO 70765.
Listen to the show
Hear Real Estate Today on KIRO Radio
Join Tom Kelly every Sunday at 9am on KIRO Radio to talk Puget Sound real estate.

Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know a student who stands out in the classroom, school and community?
Help make their dreams come true by nominating them for a $1,000 scholarship and a chance to earn a $10,000 Grand Prize. Brought to you by KIRO Radio and Comprehensive Wealth Management.

Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.