Rise in U.S. house prices to halve next year, affordability to worsen - Reuters poll

[Celerity]

https://www.reuters.com/world/us/rise-us-house-prices-halve-next-year-affordability-worsen-2021-12-07/



The rise in U.S. house prices will slow to half its double-digit rate next year but still outstrip increases in consumer prices and wages, according to a Reuters poll of property analysts, who said affordability would worsen over the next two to three years.

Often viewed as the bedrock of financial wellbeing and consumer confidence, the U.S. housing market has not only weathered the pandemic-induced economic slowdown, it has outperformed the broader economy.

Ultra-low interest rates and initial pandemic-related demand for more spacious accommodation to allow for home offices has pushed up property prices at a blistering pace.

The S&P Case-Shiller index of 20 metropolitan areas has risen at a double-digit rate over the past 10 months, a pace the Nov. 17-Dec.6 poll of over 25 property analysts said would continue for the rest of the year to average at 16.8%. That was expected to drop to 8.0% in 2022, according to the poll. Forecasts were in a 3-15% range.

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