Housing Outlook Sees Reason For Optimism!
Over the past few years, a pattern has emerged:
The economy slows during the first quarter then begins to rev up during the second quarter. Now, according to Fannie Mae's Economic & Strategic Research Group, we may be on pace to see the same thing this year. But what will that mean for the housing market and hopeful home buyers and sellers? Well, according to Fannie Mae's chief economist, Doug Duncan, it means things will continue to move forward – although gradually. “Positive demographic factors should continue to reshape the housing market, as rising employment and incomes appear to be positively influencing millennial home-ownership rates,” Duncan says. “However, the tight supply of homes for sale continues to act as both a boon to home prices and an impediment to affordability.” In other words, as long as the economy continues to post gains, buyers should be able to manage higher home prices due to their improving financial situation. At the same time, current homeowners hoping to sell their homes this year, will benefit from the upward pressure currently pushing home prices higher. In other words, the market's outlook remains relatively unchanged from previous months. Low inventory is boosting home prices but the economy and job market have kept buyers in the hunt.