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US prices to rise steadily in 2020

House prices are expected to rise by 2.8% between December 2019 and 2020, according to a survey of 100 housing experts and economists.

The research, which was from real estate database company Zillow, predicted that price growth would slowdown from 4.7% annual growth to October.

The firm also predicted that the US will not enter a recession in 2020, owing to a pickup in consumer spending, job creation being on a steady path and annual wage growth at around 3% since October 2018.

Skylar Olsen, director of economic research at Zillow, said: “With the housing market stabilizing from the drama of the price recovery and the slowdown during 2019’s home shopping season, we have a rare moment of calm to reflect on what housing might look like in the year to come.

“If current trends hold, then slower means healthier and smaller means more affordable. Yes, we expect a slower market than we’ve become accustomed to the last few years, but don’t mistake this for a buyer-friendly environment – consumers will continue to absorb available inventory and the market will remain competitive in much of the country.

“But while the national story is a confident one, housing in some manufacturing-heavy markets may see adversity. The struggle could be even more stark, since similarly affordable housing markets with a more balanced job profile may be 2020’s rising stars.”

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