According to a recently released report from Freddie Mac; the December Insight & Outlook, which focuses on the strength of the housing markets’s recovery and what expectations are for the coming year, findings show the overall economy has significantly recovered from the financial crash.
With declines in unemployment figures, stable growth in the economy and a bolstering housing market, both the overall economy and residential real estate market have achieved significant gains and the forecast into 2016 looks very promising. However, the report also warns that these very same economic gains could also start to create trouble for possible home buyers looking to buy homes for sale and condos for sale, as ascending mortgage rates and rising home prices bring about unfavorable affordability conditions.
So what are expectations in the new year? Freddie Mac is certain a robust labour market mixed with bottled-up demand will overcome the affordability worries and is predicting a three percent rise in home sales over 2015’s total - which is currently on target to be the best year since 2007.
Freddie Mac also believes that even though rates for mortgages will start to rise, they will still continue to remain historically low. In addition, rises in prices of homes will begin to balance out as building for new construction homes increases and buyer demand drops.
In final, Freddie Mac is certain the economic strength will help assuage concerns of home-buyers about affordability and this year’s drive should carry over into 2016.
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