Home Sales Expected to Surpass 2006 Highs

The U.S. has weathered The Great Recession
…and emerged victoriously!

Home Sales Prices Expected to Rise!
housing-up
Americans are resilient and now it’s paying off in a big way. Although the 2007-2010 housing market is characterized by deflated home values, an era of short sales and bank foreclosures, and negative equity, those who remained in their homes are now reaping the benefits of staying the course.

This month Realtor.com reported that total home sales next year are anticipated to reach the highest numbers since 2006. Sales of existing and new homes are also expected to reach 6 million for the first time since 2006. The pace of growth of existing home sales and prices are presumed to hold steady and remain strong overall. New construction home sales are foreseen to increase by 16 percent.

In September, CoreLogic released a U.S. home equity report, showing that 91 percent of all mortgaged properties now have positive equity. The negative equity pandemic has passed and over the previous three years, home prices have risen year after year. CoreLogic predicts home prices will continue to rise an additional 4.7 percent through 2016. Sellers are in a better equity position and buyers are feeling more urgency to secure their place in residential property wealth acquisition.

The Urban Land Institute Center for Capital Markets and Real Estate reported that not only is the residential market holding strong, but so is the industrial/warehouse, office, retail, and rental market. Analysts expect rental rates in all of these sectors to rise 2 to 4 percent through 2017.

The Washington Post recently reported that the Fed may increase interest rates, but it likely won’t affect the market substantially. The Mortgage Bankers Association predicts a 30-year fixed-rate mortgage will hover around 4.8 percent at the end of 2016, an increase of less than one percent. These numbers are encouraging for a nation coming out of the incorrect perception that the housing market will continue to be a bumpy ride. The data proves otherwise.

Click here to read more of this article written by Mike Brown. 

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