Interested in learning more about the direction of the housing market? Here's what it looks like on a grand scale - before you make a decision to buy or sell remember that real estate is local.
The April 2015 U.S. Economic & Housing Market Outlookfrom Freddie Mac revealed that they are optimistic about the real estate market in 2015. As a matter of fact, the sub-title of the report was “Great Expectations”. What made Freddie Mac so optimistic? Here are a few highlights from the report:
“For the remainder of the year we should see a resumption of solid economic growth and acceleration in housing activity. Notwithstanding a disappointing March jobs report the acceleration is already underway.”“With spring upon us, housing markets are poised to accelerate and we expect the best year for home sales since 2007. Despite harsh winter weather to start the year, home sales through February are only off from the 2013 pace by 7,000 sales... Pending home sales were up 3.1 percent in February to the highest level since June 2013. This marked the fourth consecutive month for rising pending home sales showing positive momentum in general for the housing market.”
“By the end of the spring home buying season in June, we should be well above the pace of home sales for any year since 2007.”“We are as optimistic about trends in housing markets moving forward as we have ever been since the depths of the Great Recession.”
“Due to strong growth, we are expecting house prices to increase 4.0 percent in 2015.”
But there were some warnings…
On available supply:
“With low mortgage rates, improving labor markets, and rising demand, one key issue for housing over the next two years will be the lack of supply of for-sale and for-rent homes.”“Many metro areas that have seen robust job growth and population increases are facing shortages of available for-sale inventory.”
On interest rates:
“However, by the end of the year long-term interest rates should only increase modestly, ending the year at about 4.3 percent for the 30-year fixed rate mortgage.”
Note: Freddie Mac worded this as being not that crucial. However, a 4.3% mortgage rate is about a .75 increase over current rates.
Things are looking good for the real estate market. If you are thinking of selling, contact me to discuss how this applies to your neighborhood.