NAR: Existing-home sales indicate stronger 2015 housing market [VIDEO]
Posted on Monday, January 12, 2015 at 10:06:18 AM
Although it is still winter - and the slow season for real estate - it is never too cold to forecast the 2015 housing market.
According to research conducted by the National Association of Realtors, the prediction is that existing-home sales will increase by 7 percent over the coming 12 months.
What does this mean? NAR chief economist Lawrence Yun explained that it could be a sign of economic and labor market growth, as well as healthier home prices in the new year.
"Home prices have risen for the past three years cumulatively about 25 percent, which boosts confidence in the market and traditionally gives current homeowners the ability to use their equity buildup as a down payment toward their next home purchase," he added. "Furthermore, first-time buyers are expected to slowly return as the economy improves and new mortgage products are made available in the marketplace with low down payments and private mortgage insurance."
While residential financing rates are low at the moment, Realtor.com forecasted higher rates for 2015. However, figures are currently near record lows, so even a modest increase wouldn't price out too many people from the housing market.