Where is Housing Headed for the Rest of 2016?
The housing market has been a buzz lately, and it may have you asking yourself if you should be listing your house now or if you ever will be able to buy a house with the lack of inventory. You are not alone with these thoughts. Freddie Mac released their April Economic Outlook (link below) and they have plenty of optimism for the housing market. Give us a call today to schedule a listing or buying consultation to learn more about our local market and to see if it is the right time for you.
Source: Simplifying The Market
With the overall economy just inching along, some experts are questioning whether the housing market can continue its momentum throughout the rest of the year. People are beginning to ask questions such as:
- Will disappointing economic news adversely impact housing?
- Is affordability a major concern in todays real estate market?
- Are we approaching a new housing bubble?
- Are mortgage standards too tight? Or have they loosened too much?
Freddie Mac, in their April Economic Outlook, addresses the disappointing economic news and what impact they think it will have on housing:
Recent data darkened the growth outlook for the first quarter of 2016. However, despite the disappointing economic reports, we still forecast housing to maintain its momentum in 2016.
Weve revised down our forecast for economic growth to reflect the recent data for the first quarter, but our outlook for the balance of the year remains modestly optimistic for the economy.
What about real estate?
Freddie Mac was much more optimistic about housing
We maintain our positive view on housing. In fact, the declines in long-term interest rates that accompanied much of the recent news should increase mortgage market activity.
They went on to conclude:
“We expect housing to be an engine of growth. Construction activity will pick up as we enter the spring and summer months, and rising home values will bolster consumers and help support renewed confidence in the remaining months of this year.”Return to Blog