NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) released a research report today on U.S. Home Appreciation. In 2012 and 2013, U.S. home prices rebounded at annual rates of more than 10% according to most popular measures of HPA, buoyed by a lack of supply and a large number of cash buyers. Perhaps the single biggest factor behind the apparent improvement in home prices from 2011 through 2013 was closing the gap between sales of foreclosed homes and voluntary sales. In 2010-2011, the discount for an REO home vs a comparable voluntary sale was as much as 40%, but by 2013 this discount had largely disappeared.
KBRA believes that over the next two years home price appreciation (HPA) is likely to slow considerably in many markets around the country, and even decline modestly, as the positive effect of extraordinary factors such as a surfeit of cash buyers and tight supply of homes dissipates.
After several years of double digit valuation increases, prices for residential real estate in the U.S. are showing signs of slowing to levels that are more aligned with rates of employment and consumer income, and thus sustainable.
To view the report, please visit https://www.krollbondratings.com/show_report/1567.
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
