For the majority of this year, the housing market could not get past low inventory levels, which were continuously cited as the main road block to a fully healthy housing market. Next year should be better, according to the newly release forecast from the National Association of Realtors, but it’s going to take time.
During the residential housing and economic forecast session at the 2016 Realtors Conference & Expo, Lawrence Yun, chief economist of the National Association of Realtors, and Dennis Lockhart, president and CEO of the Federal Reserve Bank of Atlanta, discussed the 2017 housing and economic forecast, along with the economic conditions that support the housing sector.
Yun predicts that housing starts will jump 5.3% next year to 1.22 million.
However, this is still under the 1.5 million new homes needed to make up for the shortfall in recent years and keep up with the growing demand.
The report added that new single-family home sales are likely to total 570,000 this year and rise to around 620,000 in 2017.
And ready to step into those new homes are Millennials. Both Yun and Lockhart stated that they are optimistic that housing demand will include leading-edge millennial households finally dipping their toes into the market at a growing rate. [read full article]
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