Solid employment gains, attractive mortgage rates, a growing economy and pent-up demand
will help keep the housing market moving forward throughout 2015 and into next year,
according to economists who participated in a recent National Association of Home Builders
(NAHB) 2015 Spring Construction Forecast Webinar
“This should be a good year for housing, buoyed by sustained job growth, rising
consumer confidence that is back to pre-recession levels and a gradual uptick in
household formations. We expect 2016 to be even better, due to a significant amount
of pent-up demand and an economy that will be entering a period of reasonable strength
and consistency.”, says NAHB Chief Economist David Crowe.
The real estate industry is expected to remain on a sustainable course of solid growth for 2015 through 2017, according to a new three-year forecast from the Urban Land Institute (ULI) Center for Capital Markets and Real Estate. The outlook – the latest installment of the semi-annual ULI Real Estate Consensus Forecast – is based on a survey of 43 of the industry’s top economists and analysts representing 32 of the country’s leading real estate investment, advisory, and research firms and organizations.
For an analysis of the survey findings, as well as highlights of the industry and overall economic projections through 2017, click here .
The recent release by the Federal Housing Finance Agency (FHFA) shows that its
measure of house prices, House Price Index—Purchase Only, rose by 5.1 percent on a
12-month seasonally adjusted basis in January 2015. This marks the 36th
consecutive month of year-over-year growth. Over this nearly three-year period,
house prices have risen by 20.1%.
Similarly, the recent release from Standard and Poor’s (S&P) and Case-Shiller
indicates that their measure of national house prices, the House Price Index–
National, rose by 4.5% on a year-over-year seasonally adjusted basis. This is
the 33rd consecutive month of year-over-year increases in the house price index.
Over this period of more than two-and-a-half years, house prices have risen by
House prices are expected to continue to grow and few expect house prices to go down.
According to separate data from Fannie Mae, although most expect house prices to
continue to go up, senior mortgage executives are more optimistic about house price
growth than the average consumer. The difference in the level of optimism about
future house price growth largely reflects consumersviews that house prices will
likely stay the same over the year.