Focusing on the growing economy, which has strong private sector growth, can show you that the housing market will most likely quickly grow right along side of it. Except more in the coming year, says expects. And be optimistic.
While the high unemployment rate and the challenges with qualifying credit standards will keep the housing market, a renting market for most Americans. In fact, in a survey from the Census Bureau Housing Vacancy Survey (2013), it was stated that renters dominate new household formation. Why, you might ask. This is actually in part due to the inability for borrowers to be approved for a mortgage or, a lack of confidence that if approved, given the lagging economy, their ability to keep paying their mortgage. As you can see, the American consumer is in a bit of a fiscal crisis.
However, home prices are said to start a steady increases through 2016 starting this year, this according to a quarterly survey of more than 100 economists, real estate experts and investment strategists.
The survey, was conducted by research and consulting firm Pulsenomics LLC on behalf of real estate search, Zillow, between Aug. 30-Sept. 14, 2012 and involved asking 113 participants to project the path of the S&P/Case-Shiller U.S. National Home Price Index over the next five years.
The latest S&P/Case-Shiller Home Price Indices, that includes data through June, show national home prices up 1.2 percent from a year ago during the second quarter. In fact, all of the markets in the S&P/Case-Shiller 20-city composite posted annual gains for the second month in a row, and all but two—Charlotte and Dallas—posted better annual returns in June compared to May.
These results were optimistic. Economists now forecast home prices will rise 4.7 percent in 2013, eight percent in 2014, 11.4 percent in 2015, and 15.2 percent in 2016. Wouldn’t that be fantastic? That’s an expected annual growth rate of 2.9 percent between 2012 and 2016. While it is slightly under the 3.6 percent annual growth rate experienced in the pre-bubble years between 1987 and 1999, it’s still very exciting.