Americans’ expectations for home price increases over the next year moderated sharply in a new report on the outlook for the housing sector, released Tuesday by the Federal Reserve Bank of New York.
Over the next year, respondents to the central bank survey projected home prices to rise by 2.6%, down sharply from the 7% annual rise they projected in Fed data a year ago. The bank noted the expected increase is the weakest since 2014, when the New York Fed survey began.
Even as expected home price increases sharply declined, expectations for rent remained historically high, the bank said. Over the next 12 months, households see rent rising by 8.2%, down from the even higher 11.5% gain predicted a year ago.