Few weeks ago I posted a blog about Real Estate Industry prediction for 2013 by NAR. Now we have housing industry prediction by Fannie Mae Research team. The housing market is “on a sustained growth path,” according to the latest economic outlook by Fannie Mae’s Economic & Strategic Research Group. Below is the snapshot of the report.

“One of the key developments for the housing market last year was the general consensus that home prices, on a national basis, bottomed earlier in the year and continued to build momentum, exhibiting robust year-over-year gains unseen since the housing boom,” according to the report.

Housing inventories are at the lowest since December 1994 and fewer distressed homes have helped to lift home prices, according to Fannie Mae economists. Fannie Mae economists said the housing recovery is “broadening” and “durable.”

“Housing underpinned the broader economy in 2012, particularly the pickup in construction,” the report said.

Among some of Fannie Mae economists projections for this year:

Home prices: Fannie Mae economists predict that the median price of existing homes will increase 2.3 percent on an annual basis this year, reaching $181,000. The median price of a new home will likely increase 1.6 percent to $248,000. For 2014, economists predict that home prices will increase an extra 2.8 percent.

Home sales: Existing-home sales will likely rise 11.5 percent in 2013, and new-home sales will rise 12.5 percent, economists predict.

Mortgage rates: Rates will likely edge up slightly this year with 30-year fixed-rate mortgages projected to average 3.8 percent this year and rise to 4.4 percent in 2014.

Unemployment: The mortgage giant anticipates an average 7.8 percent unemployment rate this year, followed by an average 7.4 percent rate in 2014.

Click to read full report.

It looks like housing is going to continue its steady progression assuming the employment scene gets better and both pushes the overall economy forward.

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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