A few weeks ago, Jonathan Smoke, the Chief Economist at realtor.com, announced: “All indicators point to this spring being the busiest since 2006.”
Now, Freddie Mac has supported that claim and is saying that 2016 will be the best year that the real estate industry has seen in ten years. In their March Housing Outlook Report, Freddie Mac explained: “Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade. Home sales, housing starts, and house prices will reach their highest level since 2006 according to our latest forecast…Challenges remain, with low housing supply and declining affordability being a key concern in many markets, but on balance, the housing markets in the U.S. are poised for the best year since 2006.” The key indicators that have given Freddie Mac such a positive outlook are:
- Low interest rates.
- A resilient labor market.
- An increase in household formations
- A projected increase in newly constructed homes