According to Arch MI’s recently released Spring 2016 Housing & Mortgage Market Report the likelihood of U.S. home prices declining over the next two years remains low at 5%. They do caution that homes in the “Energy Patch” states (coal, oil or natural gas producing states) remain at a heightened risk and may experience slower than normal economic and home price growth.
However, they suggest home prices should rise faster than inflation.
“Apart from a subset of energy extraction states, home prices should rise faster than inflation, thanks to strong fundamentals,” said Dr. Ralph G. DeFranco, Arch MI ’s Chief Economist. “Positives include strong affordability, home prices generally below their historical relationship with incomes, U.S. job growth of more than 2 million jobs a year, and a low levels of construction relative to growing demand.”
Click here to download the full report.
