A new article from The Wall Street Journal highlights a handful of positive trends that could lead to a healthy spring and summer for the U.S. housing market.
The pace of home-price appreciation has slowed, with the year-over-year change in the S&P/Case-Shiller 20 City Composite index falling sharply to 4.5% last December from 13.8% in November 2013.
Not only should Tuesday’s report on prices for January show a slight quickening, but the ingredients appear right for a strong spring and summer. Economists polled by The Wall Street Journal see the S&P/Case-Shiller index’s year-over-year pace having risen to 4.8%.
The mortgage market remains friendly, with the average 30-year mortgage rate recently falling to around 3.7% from 4.4% a year ago. Credit conditions have loosened, too. Meanwhile, supply and demand appear conducive to price increases.
