The housing market is stronger today
than at any point since the Great Recession and has made progress in
several key areas after hitting bottom in 2009, Freddie Mac reports in a
blog post looking at the state of the housing market heading into
spring.
Home sales are up 13 percent since their low point, Freddie Mac
reports. Frank Notaft, Freddie Mac’s chief economist, predicts that home
sales will rise about 3 percent in 2014.
Also, the agency reports that housing starts are up 50 percent since
hitting bottom. Freddie Mac is predicting a nearly 20 percent increase
in new-housing starts in 2014, “which will begin to help ease tight
inventories in many markets.”
Housing prices have also been on the upswing, about 16 percent higher
than their bottom in 2009, Freddie Mac reports. They expect home values
to continue to rise this year, but at a more moderate 5 percent pace.
Also, researchers say many markets are still posting housing values that
are below their 2006 peaks.
Freddie Mac is forecasting mortgage rates to remain near their
historic lows this year, but rates are expected to rise about a
half-percentage point during the year to around a 5 percent average by
the end of the year.
Source: “After Winter Chill, Time to Spring Forward,” Freddie Mac (April 10, 2014)