Recently released findings point to a mixed message with regards to the current real estate housing market. In one instance, new construction home sales and pending home sales were both down in September. However, in another instance, sales of existing-homes for sale, condos for sale, construction start ups, and confidence amongst builders all rebounded. Adding to this recent news of volatility in the economy and lagging growth, it is difficult to understand the whole picture.
Fannie Mae’s Economic & Strategic Research Group, which releases forecasts for the real estate housing market and economy outlook, explains things really aren’t that difficult to understand. The group says findings show there is still positive movement despite the roller coaster findings.
Doug Duncan, Fannie Mae’s chief economist said, “Despite recent headwinds, which likely will slow economic growth compared to the first half of 2015, we see positive trends for consumer spending and housing heading into the fourth quarter.” Mr Duncan continued, “Strong home price gains should help drive an increase in household net worth again in the third quarter, and, combined with low gasoline prices and mortgage rates, should support strong consumer spending throughout the rest of the year.”
Saying it differently, the positive gains in current price increases has elevated the average homeowner’s net worth, which should spur increased consumer spending and help the overall economy for the remainder of the year.