Home values could surge 35 percent without stretching housing affordability, Raj Dosaj, vice president of the home price index at LPS Applied Analytics, said during a recent webinar hosted by HousingWire.
Dosaj says that the increase in home prices could be less than that if mortgage rates rise, which he says they are predicted to do.
“During the peak of the housing run-up, affordability was stretched as the market sold off,” Dosaj said. “As home prices dropped, affordability dropped.”
Industry reports are showing home prices rebounding and rising across the country.
“There are definite signs that there’s room for growth,” said Dosaj. “Things are generally looking good for the housing market.”
Source: “LPS: Home prices could skyrocket 35% without affecting affordability,” HousingWire (Feb. 28, 2013)