Title Agents Optimistic on Home Prices Increasing: FAF

Title agents nationwide are optimistic about the potential for an increase in home prices, according to First American Financial.

Title agents expect prices to increase by 7.7% on average over the next year, according to First American Financial's Future Transaction Index. The states that title agents expect will have the fastest rises in residential prices are Virginia, Colorado, Texas, Florida and Mississippi.

On a separate survey question, title agents expect that the leading cause of title order cancellations will be issues pertaining to property valuations, followed by a higher purchase offer being received by sellers.

Title agents expect the current top reason for title order cancellations, the inability of a buyer to obtain a mortgage, to decline as a reason over the next year.

Title agents also are optimistic about price increases for multifamily properties, although less so for various types of commercial property.

FAF's Future Transaction Index is compiled by surveying 1,100 title agents in 49 states that do business with the company.