First Trust Finishes Third In Zillow Home Price Forecast
The Wall Street Journal released an article on the 22nd of January titled "The Year Everyone Was Wrong (Again) About Home Prices." Out of 94 economists and housing experts polled in December 2011, Brian Wesbury and Bob Stein finished 3rd for their forecast of a 3.1% gain in home prices for 2012.  Only 5 out of the 94 economists and housing experts polled predicted a gain of at least 3%. 48 of the respondents said prices would either remain unchanged or be negative for the year. The average forecast was for a 0.18% drop in prices in 2012. We expect more gains in home prices this year of 3-5%. If you are interested in a more in depth analysis of why, please refer to our "Housing at an Inflection Point" piece from November 2011 that still rings true today.

The top 5 forecasters were:
  1. Constance Hunter - AXA Investment Managers - +4.4%
  2. James Smith - Parsec Financial Management - +3.8%
  3. Brian Wesbury/Bob Stein - First Trust Advisors - +3.1%
  4. Bill Cheney - John Hancock Financial - +3.0% (Tie)
  5. Andrea Heuson - University of Miami - +3.0% (Tie)
Posted on Tuesday, January 29, 2013 @ 10:14 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.