Property experts have predicted that house prices in the US will have experienced a total growth of 6.7 per cent by the end of 2013, a survey has revealed.
The Zillow Home Price Expectations Survey spoke to 108 real estate experts, economists and investment strategists. Respondents to the survey predict that after this year, appreciation rates will fall to 4.3 per cent in 2014, and eventually to 3.4 per cent by 2018.
There are discussions of reforming the country's mortgage finance system and government sponsored entities, with most of these suggestions aiming to reduce the government's role in the mortgage market. However, those surveyed said that they would like to see the federal government maintain control of the mortgage market, nuwireinvestor.com reports.
Zillow chief economist Stan Humphries told propertywire.com that the housing market has seen a period of unsustainable growth and some cooling of it is both welcome and expected. Rising mortgage rates, diminished investor demand and slowly rising inventory will all contribute to the slowdown of appreciation.
Mr Humphries said: "Policy discussions centred on reforming the nation's housing finance system have only just begun, and it will be very interesting to see what comes out of these debates and how the market will react to new proposals."
author Nick Marr