With low mortgage rates and growing prices, the housing market is on the rise. Still, the U.S. economy has yet to truly stabilize, making it hard to guarantee the continuing growth of the real estate sector. Some experts are warning potential buyers to be aware of and prepare for potential shifts in the market.
Reuters discusses several key points made by Stan Humphries of Zillow.com:
Nayantara Hensel, spokesperson of the NABE Outlook Survey, said:
“The panelists forecast little improvement in consumption growth, significantly reduced growth in investments in nonresidential structures, equipment and software, and reduced growth in corporate profits and industrial production.”
Still, the labor market has revealed definite improvement; non-farm payrolls are averaging at 165.000 jobs per month next year. So far, 2012 has seen an average of 151,000 new jobs per month.
The U.S. housing market will also continue to grow next year, especially in residential construction and home prices.