“Overall, we’re feeling good about housing,” says Len Kiefer, deputy chief economist of Freddie Mac. “We expect this year to be the best year for home sales and new home construction since 2007 when we saw total home sales about 5.8 million for the year.”
The warm months are a particularly active period for home sales, with 40% of all sales for the year occurring between March and June.
In addition to the economy improving in general, are a couple of factors that contribute to real estate experts’ optimism:
Employment is up
A major factor in the positive market outlook is the growth of the 2015 job market. Unemployment is down 5.5%, and 295,000 new positions were opened in February 2015 (Bureau of Labor Statistics).
The most significant growth was in the food and beverage industries, business and professional services, transportation, and construction (including new home construction).
The increase of steady work for Americans means that after many years of instability, more people now have the financial security they need to purchase a home.
For many, mortgages may be more affordable than rent
The cost of rent keeps increasing (at a faster pace than inflation), to the point where home mortgage payments may actually be cheaper than paying monthly rent. (Not to mention owning a home has many benefits that renting doesn’t.)
Currently, mortgage rates are still relatively low. And with more affordable down payment options available through Fannie Mae and Freddie Mac, home ownership may be within reach for more Americans than before.
With these financial incentives combined with more Americans with steadier incomes, this spring’s housing market is looking promising.
Are you considering making the jump to home ownership? Have questions about whether the timing’s right for you? Talk to someone at The Haro Group—we’d love to help you make the best decision for your situation!
Source: National Builder Trade-In Program