US: Housing demand likely to remain solid – Wells Fargo

FXStreet (Córdoba) – Analysts from Wells Fargo expect home appreciation to decelerate modestly but explained that housing demand is likely to remain solid. Today’s home prices reports showed an increase of around 5.3 to 5.9% in November from a year ago.

Key Quotes:

“Home prices rose in November, as the S&P/Case-Shiller U.S. National Home Price Index (HPI) increased 0.9 percent on the month. Nationally, home prices have risen 5.3 percent over the past year (…) In a separate report released today, the FHFA HPI, which reflects homes securitized by Fannie Mae or Freddie Mac, rose 5.9 percent over the year.”

“Historically low levels of inventory for new and existing homes should continue to support home prices into 2016. Meanwhile, housing demand is likely to remain solid as underlying fundamentals, including improving labor market conditions and household formations, continue to strengthen.”

“We are looking for home price appreciation to decelerate modestly in 2016, to 4 to 4.5 percent, as supply gradually comes back online and demand from foreign buyers cools off.”

Analysts from Wells Fargo expect home appreciation to decelerate modestly but explained that housing demand is likely to remain solid. Today’s home prices reports showed an increase of around 5.3 to 5.9% in November from a year ago.

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