BENGALURU (Reuters) – The U.S.-China trade war may blunt some of the stimulus on the U.S. housing market from expected further interest rate cuts by the Federal Reserve, with only a modest outlook for price rises, a Reuters poll of property market experts found.
The current 3% average rise expected for residential property across the United States this year is the weakest since quarterly polling for calendar 2019 began in February 2017, despite a complete reversal in Fed policy and market expectations for at least two more rate cuts this year.
Property prices are still expected to outpace inflation, but the slowdown suggests there will be no meaningful contribution to growth from the housing market.
The consensus from the Reuters poll of about 40 property analysts and brokers, taken Aug 13-22, shows U.S. home prices will rise by 3% this year, 3.2% the next and 3.3% in 2021, broadly similar to predictions from a poll in May.
Nearly 70% of analysts who answered an additional question…
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