There’s nothing like a new year to pump enthusiasm into your life, so what do the experts say about the housing forecast?
Unemployment remains low: Despite tens of thousands of people losing their homes as well as businesses and hospitality services crippled due to the storms, the unemployment rate remains at a low 4.2 percent, according to the U.S. Bureau of Labor Statistics. Buyers have the income to shop for homes.
New home construction lags demand: Due to costly governmental oversights, lack of skilled construction workers, and increased enforcement of undocumented workers, homebuilders are unable to meet demand for new homes, according to the U.S. Census. There’s currently five month’s worth of supplies at today’s rate of sales.
Millennials favor homeownership: Pew Research found that millennials are the largest living generation and are disproportionately renters compared with previous generations. As the generation matures (the oldest are at 34 years of age), seventy-two percent wish to become homeowners.
Demand is outpacing supply: According to Freddie Mac research, the hurricane season that hit the southern and eastern coastal areas, is exacerbating a market already short on homes, particularly in the affordable price ranges. Home prices are predicted to rise 4.9 percent.
Mortgage rates drop under four percent: Nationally, the average interest rates on conventional purchase-money mortgages decreased in the fall to less than four percent, reported the Federal Housing Finance Agency.
Market conditions suggest near-term winter and spring homebuying will remain brisk. You might be encouraged to buy before the summer rush!