Forecast Says U.S. Home Prices Are Overvalued, Will Peak In 2016

Source: Wall Street Journal

Americans should prepare for several years of home prices that don’t increase much because the market’s price rebound has almost run its course, according to a report published by bond strategists at Bank of America Merrill Lynch. The analysts state that U.S. home prices, after being undervalued relative to household incomes by around 6 percent at the end of 2011, have now rebounded to levels that are 9.7 percent overvalued. They suggest that the post-crisis boom in home prices witnessed over the last two years “is most likely over.”

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http://blogs.wsj.com/economics/2014/07/17/forecast-says-u-s-home-prices-are-overvalued-will-peak-in-2016/