There is more good news for the housing market. According to NAR Chief Economist Lawrence Yun, the steady recovery is expected to continue over the next few years, barring further tightening of mortgage credit availability or the much discussed “fiscal cliff.”
Much of 2012 has looked promising. Home sales and housing starts recorded notable gains this year compared to suppressed activity over the previous four years. Currently, all of the major home price measures are showing sustained increases. And while mortgage rates are now at historic lows, they are expected to rise to about 4.0 percent next year and 4.6 percent in 2014.
With rising demand and shrinking inventory, a meaningful increase in home prices is also expected. The national median existing-home price should rise to $185,200 next year.
- What to Expect…
Lawrence Yun also projects the market share of distressed sales will decline from 25 percent in 2012 to 8 percent in 2014. For more information on NAR’s market forecast, research and housing statistics, visit www.realtor.org/research-and-statistics.