As the housing market continues its recovery in 2015 with positive trending data regarding home sales and prices, many are wondering if the market will see continued strength in the months ahead. This article from Trey Garrison, Senior Financial Reporter for HousingWire.com, provides some predictions for housing going forward.
The recent strength of housing activity suggests the market is in a good place, relatively speaking, to handle the inevitable – though certainly not imminent – gradual increase in interest rates.
In a client note, analysts at Capital Economics – who tend to be on the optimistic side – say that they believe with credit conditions gradually loosening and affordability very favorable, they expect sales and prices to enjoy further gains.
“We expect the economy to rebound from the weather-related weakness at the start of the year. GDP growth should reach 2.3% this year and 2.8% in 2016,” says Ed Stansfield, chief property economist. “Interest rates will soon begin to rise. However, favorable valuations and affordability will support the housing recovery for some time yet.”
Stansfield says that a long-overdue upturn in mortgage lending should support further growth in new and existing home sales over the next couple of years.
