With the year coming to a close the National Association of Realtors is making predictions about the 2018 housing market. Announced this week by NAR's chief economist Lawrence Yun at the Association's Realtors Conference and Expo in Chicago, the 2018 economic and housing forecast is relatively positive. It is estimated that sales will grow by 3.7 percent over the next year while home prices will climb 5.5 percent.
Yun shared that he predicts a 9.4 percent growth in housing starts next year but notes that this is still less than historical norms.
"The lack of inventory has pushed up home prices by 48 percent from the low point in 2011, while wage growth over the same period over the same period has been only 15 percent," said Yun. "Despite improving confidence this year from renters that now is a good time to buy a home, the inability for them to do so is causing them to miss out on the significant wealth gains that homeowners have benefitted from through rising home values."
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.25 percent.
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