Economist Sees Golden Period For Housing Market

Predicting the future isn’t easy. But, when it comes to the economy and housing market, there are indicators and trends that can give you a fairly good idea of where things are headed. For example, Frank Nothaft, CoreLogic’s chief economist, recently told HousingWire that he believes the housing market is entering a golden period. His forecast is based on a few key indicators. One is the job market. With the unemployment rate below 4 percent and expected to stay low, it is reasonable to believe that more Americans will feel secure in their income and ready to buy. Those prospective home buyers may also be motivated by the fact that mortgage rates are now hovering just above historic lows. The combination of financial security and affordable financing should lead to increasing home sales. And while boosted demand may push prices higher, Nothaft doesn’t expect a dramatic spike. In short, his expectation is that housing fundamentals will stay relatively steady through the end of next year. “It’s possible that a year from now there could be a full-blown crisis in the Middle East that’s going to cause oil prices to skyrocket and trigger a recession, but absent something like that, we see a real golden period for housing through at least the next year,” Nothaft said. More here.

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