It’s no secret that the past few years have been tough in the real estate market; in fact, David Crow, chief economist and senior vice president of the National Association of Home Builders (NAHB), said, “Last year was the worst year on record for house sales, for 60 years of housing-sale info”. Yikes! The good news is that NAHB has released a prediction of a 19% improvement in single-family housing starts.
Additionally, Lawrence Yun, chief economist and senior vice president of research at the National Association of Realtors (NAR), says that there has been an increase in housing demand, and that the big hold ups with home sales are due to appraisal and mortgage issues. However, these issues are being resolved, slowly but surely, and owners, sellers, and buyers should notice a difference shortly.
Stan Humphries, chief economist at online real estate marketplace Zillow, also preaches optimism for the housing market. Humphries views the recovery as something that has had a small beginning, but will have a large impact. He says, “It’s almost like a bacteria attacking a bad virus”; it goes one ZIP code at a time. As with David Crow, Humphries believes that the next housing market bubble will start with single-family homes.
To read the full article on the mid-year real estate market forecast, click here.