Experts Advise Caution as Housing Market Grows

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


U.S. Expects Slow Economic Growth in 2013

According to a recent survey, the United States’ economy will continue to grow, but at a slow pace. This is due to low consumer spending and minimal business investment in the region.

Gross domestic product is expected to grow at an annual rate of 2.1% in 2013, according to a forecast from the National Association for Business Economics. Last year, it predicted a 2.2% growth rate.

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.