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        Trade wars offset the stimulus effect of Fed interest rate cuts


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Currently, the average growth rate of residential property in the United States is expected to reach 3% this year, the lowest since the quarterly survey on February 2017 on the calendar year 2019. Although the Federal Reserve has completely changed its policy direction, the market expects at least two interest rate cuts this year.
Real estate prices are still expected to surpass inflation, but the slowdown in house prices means that the real estate market will no longer make a significant contribution to economic growth.
The average forecast of about 40 real estate analysts and brokers surveyed by Reuters shows that U.S. house prices are expected to rise 3% this year, 3.2% next year and 3.3% in 2021, roughly the same as the previous survey in May. The survey was conducted between August 13 and 22.
About the additional questions about the future trend of housing prices, nearly 70% of the respondents believed that the downside risk of the flat prospects of the real estate market was high.
"The problem is that overall sentiment is beginning to show some signs of weakness... so there is concern that problems outside real estate are hampering a stronger recovery, and without a trade war, the economy may have recovered strongly," said Brett Ryan, senior U.S. analyst at Deutsche Bank in New York.


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