2015 is starting out with a strong economy and that trend is expected to continue, according to Fannie Mae’s Economic and Strategic Research Group. The strengthened employment sector and income growth are two indicators to note, as they go hand-in-hand with consumer spending and home ownership.
The economy is predicted to see a 2.9 percent growth this year, up from a 2.5 percent growth in 2014 and home sales should rise by about 6 percent for 2015, according to Fannie Mae’s economic report.
The firm’s forecast predicts strong hiring, stabilized housing affordability, and lending requirements that will be favorable to more people – leading to increased housing demand.
As gas prices remain low, the housing market will benefit as consumers get more upbeat about the overall economy and increase their own spending.
Fed chair Janet Yellen admitted this sentiment during a press conference after the Fed’s December meeting when she said lower oil prices are “something that’s certainly good for families, for households. It’s putting more money in their pockets.” She added that “it’s like a tax cut that boosts their spending power.”
For more information about industry news and current trends locally, contact a Bowen Agency realtor today.