Freddie Mac: Homebuyers' future is bright
Posted on Tuesday, November 18, 2014 at 8:21:16 AM
The outlook for the U.S. housing market has been up and down during 2014. However, now that the year is winding to its close, it is easier to see that 2015 may have its fair share of positives for homebuyers and sellers.
According to Freddie Mac's U.S. Economic and Housing Market Outlook, the home purchase market is one segment that is expected to be strong next year. The government-sponsored enterprise believes that housing starts will rise by 20 percent on a yearly basis, while total home sales could tick up by 5 percent during that time.
"The good news for 2015 is that the U.S. economy appears well poised to sustain about a 3 percent growth rate in 2015 - only the second year in the past decade with growth at that pace or better," explained Frank Nothaft, vice president and chief economist at Freddie Mac.
In addition, a recent report from Trulia outlined where homes were most and least affordable for middle-class homebuyers and millennials alike. According to the research, almost half of all homes in the country are within the price range of middle-income millennials today. Even so, this segment typically earns less on an annual basis than older households.
Overall, affordable residential financing rates and other positive trends are expected to continue into 2015, a plus for all buyers and sellers.