Freddie Mac: Future of housing appears bright
Posted on Thursday, November 15, 2012 at 4:30:37 PM
The housing market gained considerable momentum so far this year, and rising property values and sales rates could continue in the future.
During the next five years, home sales are expected to increase roughly 5 percent annually, according to a forecast from Freddie Mac. In addition, housing starts could range between 1.7 million and 1.8 million per year in the same period, marking a notable gain from recent rates.
However, despite the potential improvements, the real estate industry has a long way to go to get back to the levels of activity experienced at the market's peak.
"What a healthy housing market should look like will dismay those who keep comparing housing to what it was during its peak years," said Freddie Mac vice president and chief economist Frank Nothaft.
Meanwhile, improvements in homebuilding and sales could cause considerable appreciation of property values, the report said. While this could make the prospect of purchasing a home slightly more expensive, buyers should examine a mortgage comparison chart before they try to make the transition to homeownership.