Stronger job creation in the United States is making economists have a positive outlook on home resales over the next two years. The annual pace of existing home sales will most likely rise to 5.25 million units in the first three months of 2015 from 5.09 million in the current quarter, according to the poll’s median forecast. The six consecutive months through July in which U.S. employers added more than 200,000 jobs added much optimism. Median says the annual pace of home resales will rise even higher to 5.29 million in the second quarter of 2015. The median forecast put the 30-year mortgage rate at 5.25 percent, while just last week the 30-year rate averaged 4.28 percent, according to the Mortgage Bankers Association.
On the other hand, housing construction was up 0.7% during the previous months to an annual rate of $358.1 billion after two months of declines. Spending on single-family homes rose 0.5% and is 9.4% higher than a year ago, while apartment construction rose 0.2% and is 41% higher than a year ago. Construction gains are an encouraging sign that spending on building projects will help boost the economy in the second half of this year. Economists are generally saying this could be a symptom of an improving economy, while also helping to bring home price appreciation back down to more sustainable levels.
If you are interested in exploring the real estate market, whether buying or selling, please contact us today at 678-207-1505 or email us at info@TheREMG.com to see how one of our industry-leading professionals can better assist you.
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