According to polls conducted by Reuters, U.S. house prices are expected to continue in the same upward trends over the next two years.
U.S. house prices will continue to race ahead over the next two years, according to a Reuters poll of analysts who said any COVID-19 resurgence was unlikely to knock housing market activity off its current upward course. Last year, most of the world’s largest economies were brought to their knees by the pandemic but record low interest rates and pent-up demand for homes pushed U.S. house prices to levels not seen in more than half a decade.
Despite the U.S. economy on average contracting last year at its sharpest pace since the Second World War, it had little bearing on housing market activity, an immunity the sector was expected to carry this year.
The Jan. 12-Feb. 1 poll of nearly 40 housing analysts forecast the U.S. Case-Shiller house price index to rise 5.7% this year and 4.6% in 2022, the highest since polling began for both periods.
“The U.S. housing market will continue to expand this year, perhaps at a little slower rate than recently as some of the pent up demand has been exhausted, but overall it should be a fairly good year,” said Sal Guatieri, a senior economist at BMO Capital Markets.
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