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follow Patrick 2018 May 15, 6:30pm
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A majority of U.S. adults (64%) continue to believe home prices in their local area will increase over the next year, a survey released this week (http://news.gallup.com/poll/233639/highest-percentage-2005-expect-home-prices-rise.aspx) by polling firm Gallup concluded. That's up nine percentage points over the past two years and is the highest percentage since before the housing market crash and Great Recession in the mid-2000s.The level of optimism is edging closer to the 70% of adults in 2005 who said prices would continue rising. That, of course, was less than one year before the peak of the housing market bubble in early 2006, which was largely fueled by a wave of subprime lending. (Roughly one-quarter of respondents in both 2005 and 2018 said they believed house prices would remain the same.) ...There are signs that the U.S. housing market could be overheating. The number of U.S. homes being flipped--bought and sold within a year--reached an 11-year high last year with more than 200,000 homes being flipped for second consecutive year, according to research firm Attom Data Solutions. Flipping peaked at 334,000 homes in 2005, again just before the market's peak.
...housing will continue to get more expensive for now.