Home prices could grow as high as 7.2% in 2013, JPMorgan Chase concluded in a new report.
Analysts with the bank claim prices are posting historically strong gains as the market moves into the more active summer season.
With high investor demand contributing to booming home prices as well as growth in prices of lower-tiered units posting stronger gains than higher-tiered units in major metropolitans, JPMorgan ($54.27 0.77%) is confident in its 7.2% growth projections.
Furthermore, the banking giant has revised its projections to 3.9% in 2014 and 3.2% in 2015, with surprises likely to be on the upside.
“Despite the lack of data for investor demand, we saw all-cash sales remain higher than 30% of housing sales,” analysts at JPMorgan ($54.27 0.77%) said.