Fannie Mae economists say that “the
broadening housing recovery could very well be more robust” than they
anticipated, according to the mortgage giant’s lately monthly economic
outlook report. Low inventories of homes for sale are contributing to rapid price
increases all across the country, which are expected to continue
throughout this year.
However, higher-than-expected price jumps mixed with a shortage of
for-sale houses could constrain existing-home sales this year and next,
according to the economists. Sales of new single-family homes,
however, are expected to post an 18 percent gain this year and a
whopping 35.8 percent by 2014. The economists say that 2016 should be the year where housing activity returns to “normal.” As home prices rise, Fannie economists say they expect that will
encourage more banks to ease up on the tight lending conditions, which
have been one of the major barriers in returning to a more “normal”
housing market.
Source: “Fannie Mae: Housing recovery could be 'more robust' than anticipated,” Inman News (April 17, 2013)