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Housing Market Uptrend Expected Through 2014

The 2012 REALTORS Conference and Expo was very exciting this year and the presenters from all of the US were saying the same thing, the market is improving. 

The housing market results for 2012 to-date, clearly show the market has turned upward.  Existing homes, new homes and new housing starts all recorded notable gains so far this year.  It's a huge contrast from the previous 4 years with nothing but suppressed activity and the foreclosure crisis.  All forecasters monitoring the housing market say they expect this uptrend through 2014.

The Chief Economist for the National Association of REALTORS, Lawrence Yun, projects there won't be any signs of inflation for 2013, but projects it to be in the 4 to 6 percent range by 2015. 

Mortgage rates are forecast to gradually rise and to average 4.0 percent next year and 4.6 percent in 2014.  Since we are seeing a decline in the housing inventory, these analyst expect to see a meaningful rise in home prices.  The national median existing home prices rose 6.0 percent for 2012 and are projected to rise another 5.1 percent next year with comparable gains through 2014.

Yun anticipates real estate will be a hedge against inflation, with values rising 15 percent cumulatively over the next 3 years.  This also means there will be fewer upside down home owners, and that is very good news for everyone!

14 Comments to Housing Market Uptrend Expected Through 2014:

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