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US: Should home prices rise over time?

Posted on 18 April 2013

Nationwide home prices are up 8% over the last year, according to the Case-Shiller housing index. This isn’t surprising. The supply of existing homes for sale is at a seven-year low. Construction of new homes is still well below the rate of household formation. Prices will almost always rise in that situation. It’s simple supply and demand.
And it’s pulled millions of homeowners out from being underwater on their mortgage and brought new hope to the housing industry, boosting shares of D.R. Horton and NVR as the outlook for construction rises. ………………………………….Full Article: Source


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