Stronger Economic Fundamentals Expected to Drive Increases in Home Sales, Housing Starts in 2015 fhacondosapproval If this is an accurate forecast then 2015 could be a very good year for the Real Estate industry. However a 14% increase in new house starts seems a little optimistic. For a more detailed look at this subject - please read the article below. Improvements in economic fundamentals, notably employment growth among millennials, will fuel significant increases in home sales and housing starts and a modest rise in home prices in 2015, according to CoreLogics 2015 Housing Outlook released earlier this week. Sam Khater, deputy chief economist for CoreLogic, predicted an increase of 9 percent in home sales and a 14 percent spike in housing starts for the coming year in the report. In 2014, the post-crisis economic expansion celebrated its fifth birthday and the main economic drivers of demand, such as consumption and capital investments, experienced steady improvement, Khater said in the report. Employment grew at an average of 2.0 percent on a year-over-year basis for the three months ending in November 2014, the strongest rate since the three months ending in March 2006, which was the peak employment growth of the last economic expansion. Employment grew at a rate higher than the national average (3 percent, as opposed to 2 percent) for the 25 to 29 age group, which is good news for housing, because this age group is the key first-time homebuyer segment. Steadily falling oil prices, which are down 45 percent since June, provide more economic growth tailwind going into next year. The drop in oil prices reduces energy-related expenses not just for driving, but for residential real estate also, according to Khater. The stronger economic fundamentals are expected to drive an increase in demand for housing in 2015; sales are expected to jump by 9 percent, up to 5.8 million from the 5.3 million reported for 2014. Housing starts are expected to increase by 14 percent next year, up to 1.1 million. While the upturn in housing starts is healthy, it is still 23 percent below the average of 1.45 million for the last 50 years, Khater said. To read the complete article - please use the link below. dsnews/news/12-31-2014/stronger-economic-fundamentals-expected-drive-increases-home-sales-housing-starts-2015?utm_source=DSNews&utm_campaign=0f8f019758-Your_Daily_Dose12_17_2014&utm_medium=email&utm_term=0_1924082bfe-0f8f019758-174940729
Posted on: Sat, 03 Jan 2015 17:56:59 +0000
Trending Topics
Recently Viewed Topics
© 2015