Fannie Mae economists say that “the broadening housing recovery could very well be more robust” than they anticipated, according to the mortgage giant’s lately monthly economic outlook report.
Low inventories of homes for sale are contributing to rapid price increases all across the country, which are expected to continue throughout this year.
Fannie Mae economists predict that existing-home prices will rise 5.1 percent in 2013, reaching a median $186,000. They also predict home prices will increase another 3.8 percent in 2014, reaching $193,000.
However, higher-than-expected price jumps mixed with a shortage of for-sale houses could constrain existing-home sales this year and next, according to the economists.
Existing-home sales were up 9.4 percent last year, but Fannie economists predict sales to lessen that pace, growing by 6.9 percent this year and 5.5 percent in 2014. Sales of new single-family homes, however, are expected to post an 18 percent gain this year and a whopping 35.8 percent by 2014.
The economists say that 2016 should be the year where housing activity returns to “normal.” Do you agree? Please comment on your market forecast.
Source: “Fannie Mae: Housing recovery could be ‘more robust’ than anticipated,” Inman News (April 17, 2013)