In a recent blog post, FreddieMac explained that “housing is stronger today than at any point since the Great Recession began and hit bottom in 2009”. They then gave three reasons which support their position:
Home sales are up 13% since their low point.
Housing starts are up 50% since they bottomed out.
House Prices are up 16% since their trough.
Projections Going Forward
FreddieMac also believes that the market will continue to improve through 2014. They projected:
Home sales to increase about 3% in 2014 as the purchase market continues to evolve
Almost 20% growth for housing starts in 2014, which will begin to help ease tight inventories in many markets
Home value increases will continue their positive momentum in 2014
Frank Nothaft, Freddie Mac vice president and chief economist, further explained what the housing market may look like in the agency’s April 2014 U.S. Economic and Housing Market Outlook:
“Tight inventory may pose a significant challenge for home buyers in many markets across the country, which may result in higher home prices and sales being lower than expected. This is good news for those markets that have room to run on the house price appreciation front, but it’s also going to increase the affordability pinch in many markets, especially along the country’s east and west coasts. Two indicators that are supporting local housing activity are rising consumer confidence and declining unemployment rates.”
The real estate market is improving every day. The biggest challenge is a lack of inventory in many markets. If you are thinking about selling, now may be the time to make the move.