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Housing Market Set To ‘Bloom’ As Spring Buying Season Begins
While a few stumbling blocks remain, Freddie Mac insists the economy is finally headed “from gloom to bloom” this spring. The GSE released its U.S. Economic and Housing Market Outlook for March, showing that low mortgage rates, rising prices, and gradually improving consumer confidence will bolster home sales as the homebuying season starts. Compared to 2012, experts at Freddie Mac expect home sales to increase 8 to 10 percent this year, coming to about 5.4 million units sold by year’s end. With inventory remaining tight and home sales picking up in many markets, the demand for new single- and multifamily housing should result in more construction, higher new home sales, and greater construction employment. Housing starts are forecast to increase to 950,000 units for 2013, up from 780,000 last year. On the topic of prices, Freddie Mac expects an average 4.0 percent appreciation in 2013. Full Article