With the job market strong, mortgage rates low, and buyer demand up, the housing market seems ready for a boom. But because there’s been fewer homes for sale than normal, it hasn’t happened. Now, according to a new forecast from the National Association of Realtors, things may be starting to change. That’s because, the number of single-family homes expected to be built next year should total 1 million, which is the highest number since 2007. And, with more new homes being built and put on the market, buyers will have more choices, affordability will improve, and sales will increase. Lawrence Yun, NAR’s chief economist, says inventory has been the primary factor holding housing back. “All the factors that contribute to higher home sales like the job situation are terrific, and of course mortgage rates are critical to buying a home and those are favorable,” Yun said. “All the factors are lined up in a way that means we should be having gangbuster home sales.” Skyrocketing home sales could be just around the corner, though, if new home construction increases as expected. More here.
