Home prices are posting historically large gains in some markets, prompting JPMorgan Chase to revise its forecasts for the industry.
In 2013, home prices could soar up to 7.2 percent, according to a new report by JPMorgan Chase. JPMorgan Chase also revised its projections on home prices upward to 3.9 percent for 2014 and 3.2 percent for 2015.
"Despite the lack of data for investor demand, we saw all-cash sales remain higher than 30 percent of housing sales," according to analysts at JPMorgan.
Limited inventories helped net demand in April to climb to its highest level since 2006, according to the report. Also, distressed sales are declining—falling below 20 percent for the first time since 2008. With net demand climbing, distressed sales falling, and builder confidence improving, JPMorgan analysts say that the signs point to a continuous recovery in the housing market.
Source: “Home price growth projected to exceed 7% in 2013,” HousingWire (June 7, 2013)
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