Fannie Mae economists recently revealed that the housing recovery appears to be more robust than anticipated and that 2016 will be the year that the housing market will return to "normal". According to its latest economic outlook report
, Sallie Mae reveals a boost in the first quarter and believes it to be caused by a buildup of business inventories. This boost is expected to carry out into a more balanced level by the second quarter. Jobs, on the other hand, is a factor contributing to a more "moderate pace" of recovery, and is expected to level out the significant, yet "unsustainable" pave of 3.2 percent.
“The April forecast reflects the growing realization that 2013 is off to a good start from a GDP perspective, but we expect the stronger-than-expected first quarter pace to slow somewhat in the second quarter,” said Fannie Mae Chief Economist Doug Duncan. "However, the housing recovery continues to broaden and may be more robust than we anticipate, helping to offset fiscal headwinds.”
Additionally, economists predict that existing-home prices will rise 5.1% in 2013 and even higher in 2014, with a percentage of 3.8.
New home prices are expected to rise to 4.1% in 2013 with a 3.5% rise in 2014. If there's something we can take away from this, it is that now is the time to invest and sell. Although sellers are anxious in selling their properties (many are waiting to get the better deal by waiting), reports indicate the shortage of for sale properties could possibly restrain existing home prices in 2014.
However, banks should also be encouraged to lessen its restrictions on its current lending conditions. According to an article on RealtorMag.com, this is one of the main reasons why the economy hasn't been able to get back to normal.