The Demand Institute issued a new report today: The Shifting Nature of U.S. Housing Demand. It predicts that average U.S. home prices will increase slightly in the second half of 2012 and then continue to rise over the next 6 years.
However, the recovery will not be uniform across the country. Some states will see annual price gains of 5 percent or more. Texas is sure to lead that list. Other states will not recover for many years. The deciding factors will include the level of foreclosed inventory and rates of unemployment.
Demand for rental properties is predicted to remain high for the next few years as well.