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Home > 3 Reasons the Housing Market Should Thrive in 2014

3 Reasons the Housing Market Should Thrive in 2014

March 27, 2014 by Linda Granger

3 Reasons the Housing Market Should Thrive in 20143 Reasons the Housing Market Should Thrive in 2014
From our favorite real estate site, Keeping Current Matters, here’s yet another encouraging sign pointing to a full recovery of the real estate market!

Recently, HousingWire asked David Berson, chief economist at Nationwide, for his opinion on the near-term future of housing. Below are what Mr. Berson believes to be the three things you need to know about housing in 2014. We have included a quote from the article and a small comment from KCM for all three points.

Number 1: 2014 should prove to be the strongest year for housing activity since before the Great Recession

“Most economists expect an improved job market in 2014, with employment growth accelerating and the unemployment rate continuing to decline. That jobless rate drop will reflect more of a pickup in employment than further declines in the labor force participation rate. This will be the key factor improving housing demand this year, even if mortgage rates rise and affordability declines. While the housing market tends to do especially well when the job market improves and mortgage rates decline simultaneously, that combination of events occurs only rarely…People buy homes when their job and income prospects improve – even if it’s more expensive to do so – rather than buy when it is inexpensive to do so but they’re worried about keeping their jobs.”

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