House prices increased 9.7 percent year-over-year in January, continuing a recent trend, and prices show “no signs of an imminent slowdown,” according to Capital Economics. As of the fourth quarter of 2012, houses were undervalued between 1 percent and 5 percent compared to rents. Regardless, “house prices can keep rising for a good while yet,” according to Capital Economics, and in fact, rising prices will help prompt some homeowners to sell, helping to boost inventory, according to the firm.

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