Ah, it is so much fun to be able to write something positive about the real estate market!
According to an economic outlook report just issued by Fannie Mae, our country’s economy should “kick into higher gear” by the second quarter of 2011. This positive outlook is the result of improvements in consumer spending, consumer confidence, increased demand for goods and services and falling unemployment claims.
For 2011, Fannie Mae, in their December 2010 forecast, is forecasting growth of 3.4 percent which is an improvement from the 2.9 percent growth in 2011 they previously forecast. The big caveat is that this assumes “improving labor market conditions.” What this means for the real estate market, more specifically the housing market, is “despite rising mortgage rates, our (Fannie Mae) forecast for home sales is stronger than the previous forecast, given our brighter economic growth and labor market outlook,” said Fannie Mae Chief Economist Doug Duncan. Mr. Duncan goes on to say that his expectation of increased home sales is due in part to “modest additional declines in home prices” making homes even more affordable and tempting buyers as their”employment and income outlook brightens.”
After the rather sad housing market in 2010 saying 2011 will improve probably isn’t saying a whole lot (sort of like celebrating on January 2nd that you have been able to stick to your new years resolution all year thus far) but hey, it’s a start and at least things are being forecast to go the right direction! Baby steps……
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