home prices rose in 18 out of the 20 markets tracked. It's still 31% off the peak of 2006.
My expectation is that, U.S.-wide, prices should continue to increase given there was s cut-off in housing construction the past several years. While the U.S.'s population continues to grow, housing inventory was stalled and now behind the U.S.'s forecast population growth trend. This is why smart money has been investing in real estate. However, the U.S. job situation needs to improve for the price increases to be sustainable.
At our local level, Manhattan prices continue to rise driven by low rates, limited supply and foreign interest.
Wei Min Tan is Managing Director of Castle Avenue Partners and often interviewed on Manhattan real estate by the media such as Wall Street Journal, New York Times and CNN.