How ‘Real’ is the Real Estate Recovery in America? Financial management company Merrill Lynch recently tackled this question in their online video series. Senior U.S. Economist Michelle Meyer discussed the changes to the American market, and the assurances potential property investors could take in the direction it’s heading.
“House prices were up 5% in 2012 and we’re on for a similar size gain in 2013,” she said. Looking forward from there, they predicted that in the following 10 years, prices would continue to appreciate upwards, and make a gain of 40% over that time. That’s a yearly average of just over 3% per annum, which is close to the national historic average, she noted.
She agreed there had been much slowdown over recent years, with prices down 33% from their peak in mid-2006. However, she expressed confidence that America was finally starting to show signs of life again. The outlook is good, she said, and for an organisation that has been around for nearly 100 years, as well as survived the economic crash, it’s certainly a credible opinion worth considering.