Could home prices rise by 35%? According to Raj Dosaj, vice presdient of the home price index at LPS Applied Analytics, that is a distinct possibility, and could even happen without affecting home affordability.
He did add one caveat though, and that is the assumption that interest rates reamin low. From everything we have been reading, the Fed has no intention of letting interest rates rise anytime soon, so he could be right.
The Federal Housing Finanace Agency report revealed a 5.5% growth from the fourth quarter of 2011 to the same quarter in 2012, and all indications are that 2013 is starting off quite strong.
Of course, only time will tell if Mr. Dosaj will be proven correct; although, we would not be at all suprised if he might be too conservative in his prediction…at least for the real estate market in Incline Village with Nevada having no state income tax or inheritance tax.
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