2016 Looks Great for Residential Real Estate

A few weeks ago, Jonathan Smoke, the Chief Economist at realtor.com, stated: “All indicators point to this spring being the busiest since 2006.”

Now, Freddie Mac says 2016 will be the best year the real estate industry has seen in a decade. 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 giving 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

Real Estate Bottom Line

2016 looks to be shaping up as a great year for residential real estate. Whether you are thinking of buying or selling, now may be the time to sit down with me to discuss the new opportunities that are arising.