UFA released its five-year nominal house price forecast for the first quarter of 2014. Future prospects for the housing market improved again this quarter. The five year forecast for the UFA 100 city composite is now 25.1 percent, up from 22.4 percent last quarter. Prospects for the 10 large cities in the Case-Shiller 10 index (CS10) are somewhat weaker with only a 13.1 percent increase forecast.
“Readily available mortgage credit, an improved economy, and better employment prospects are all helping local housing markets recover,” said Dennis Capozza, who is the Dale Dykema Professor of Business Administration in the Ross School of Business at the University of Michigan, and a founding principal of UFA.
UFA has provided accurate and timely house price predictions since 1990 –the original and most credible house price forecasts available. The research that UFA’s principals have done underlies many other popular house price forecasts.
Research demonstrates that local geographic factors are the most important determinants of loan and collateral performance. The value of the underlying collateral accounts for more than half of the geographic components. UFA has been tracking these trends for decades. Our house price forecast has been a part of our ForeScore suite of products since 1990, and has been an underlying driver in our quarterly Mortgage Report for two decades. UFA’s forecasts are updated and refined continuously with new research and analysis.