Housing Bubble

ECRI says downturn in home prices unlikely this year

July 09, 2003

The latest prediction from the Economic Cycle Research Institute is that home prices will remain buoyant in the near term. The forecast is based on the latest reading of their Leading Home Price Index (LHPI) which was introduced in 2001 to examine the cyclical behavior of home prices.

They believe that the LHPI indicates that a downturn in home prices is unlikely this year which counters the "doomsayers (who) have been predicting the popping of the US housing bubble".

The ECRI sees stronger economic growth in the second half of the year with home prices helping to keep the US economy out of recession.

 Source ECRI

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