Yearly increases in home values could return to pre-recession levels in 2013.
Lawrence Yun, chief economist with the National Association of Realtors, predicted home values could rise by 15 percent and home sales activity by 20 percent over the next three years in Ohio.
Yun made the forecast before a group at the Ohio Association of Realtors’ at the group’s winter conference in Columbus on Monday, Jan. 18.
Carl Horst, spokesperson for the Ohio Association of Realtors, said 5 percent increases in home values year-to-year would reflect a return to pre-2008 home value increases. Before the recession the averaged home value increased by about 5.5 percent each year.
In his prediction Yun did offered insight into caveats to sustained growth in home value.
Namely, Yun said the federal government would need to create a budget deal that maintains the mortgage-interest rate tax deductions and manage rising mortgage interest rates.
Horst said if it would be a positive sign for homebuyers, and home values, if mortgage interest rates were 5.5 percent by 2015.
Horst also said the Ohio Association of Realtors will release a report on the housing market on Tuesday.
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Residents had one of their final chances to speak in front of City Council before a final decision on the city’s budget will be made.