The housing market is unpredictable, but with the right data and study of historical trends, economists can make fairly accurate predictions about where it’s headed.
Economists are still upbeat about the future of the housing market for the rest of the year, despite the most recent data that showed a gloomier first quarter than originally predicted (ergo, the unpredictability of the housing market—or any market for that matter). Housing experts predict that it will maintain its momentum in 2016 and be an economic engine of growth. With the recent data having been accounted for in their predictions, the outlook for the balance of the year remains modestly optimistic for the economy. Here are three updated housing predictions that have been made for the remainder of 2016.
- Mortgage Rates – The low mortgage rates are expected to stick around a little longer than expected. Which isn’t bad for current homeowners as their rates will stay around the same, but is a sign of a weak housing market.
- Employment – The labor market is expected to remain strong, and is projected to drop back below 5 percent for 2016 and 2017—the lowest it’s been in 8 years! More substantial economic growth for the remainder of 2016 and reduced slack in labor will drive wage gains above inflation.
- Housing Prices – Home prices will rise by 4.8 percent in 2016 and by another 3.5 percent in 2017. While not the best news for future homebuyers, it’s great news for current homeowners because they’ll see more equity gains. This is important for a strong housing market.
It’s important to know what the future might hold for us. For more information or help on how to pay off your mortgage, contact me, Andraya Coulter. I serve the Bay Area and the entire state of California and Texas with quality, suitable home loans!