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Housing Outlook for 2015

By
Services for Real Estate Pros with Smaulgld LLC

Existing home sales were down 3% in 2014 and new home sales are at thirty to forty year lows. Yet, we are constantly bombarded with headlines talking about a real estate "recovery".  After years of quantitative easing and ridiculously low interest rates, home sales remain mired in a rut.

There are some programs that are designed to boost home sales in 2015, like the 3% down Freddie Mac/Fannie Mae programs. But giving out mortgages to home buyers with just 3% down, lowering the FHA mortgage insurance and keeping interest rates low may boost home sales in 2015 even as job and wage growth stagnate. Lowering the bar for home ownership to generate more home sales, however, is no substitute for real economic growth.

 

https://smaulgld.com/false-housing-recovery-2014/

 

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