News
Expert Tells Bisnow: Real Estate Prices Will Keep Rising Unless Builders Get Crazy
January 8, 2016
CoreLogic’s Home Price Index for November 2015 shows home prices up nationwide, jumping 6.3% year over year.
And the good news keeps on coming: CoreLogic’s HPI Forecast says to expect a 5.4% increase come next November, a trend that looks to continue.
CoreLogic chief economist Dr. Frank Nothaft tells World Property Journal, "Heading into 2016, home price growth remains in its sweet spot.”
Newmark Grubb Knight Frank’s Americas Director of Research Bob Bach tells Bisnow the market as a whole is surging due to three main factors:
- low mortgage standards boosting demand
- low single family construction—727,000 in November compared to a 890,000 average, not to mention the pre-recession peak of 1.8 million
- and millennials are finally heading towards homeownership.
Bob says we can expect rising home prices coexisting with rising apartment rents to “continue for a while unless builders get crazy.”
