Economists at the National Association of Home Builders (NAHB) 2015 Spring Construction Forecast Webinar said that the housing recovery is expected to remain steady through 2015, and that the market should see even more growth. Learn more about what is predicted for the near-future of the housing recovery in this week’s blog.
Housing Recovery
Despite the recent dip in home sales in March, economists were still confident in the housing market’s ability to continue its slow but steady recovery. While NAHB Chief Economist David Crowe estimates that 7.4 million home sales were lost in the 7 years since the recession began, he stated the NAHB believes that these lost home sales will start to return as the economy returns to normal and the recession fades.
Key factors in the recovery of the market will include attractive mortgage rates, the decrease in the unemployment rate, the growing economy, and pent-up demand from all of the recession’s lost home sales. Crowe also noted the importance of the return of first-time home buyers to the market as another important factor in the growth of the market.
Production Growth
According to the NAHB, single family housing production should grow by 9% in 2015 to 704,000 units. In 2016 it is expected to jump 36% to 977,000.
Using the 2000-2003 period as a healthy benchmark when single-family starts averaged 1.34 million units on annual basis, NAHB is projecting that single-family production, which bottomed out at an average 27 percent of normal production in early 2009, will rise to 61 percent of normal by the fourth quarter of this year and climb to 81 percent of normal by the end of 2016.
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Tags: housing recovery