If you are considering renting or buying a new home, your wait should end today, because according to recent predictions from economists, real estate prices are just continuing to rise. Both t
his year and next, housing prices are expected to continue moving up.
CoreLogic chief economist Frank Nothaft said at the 49th National Association of Real Estate Editors conference in Miami that by 2017, national home prices should reach the levels they were at during the peak of the housing boom in 2006.
What’s causing such a price spike? Tight supply of real estate due to increased consumer confidence, purchases of homes by investors who have not again released them into the market, and builders who have not kept up to meet demand. However, Lawrence Yun, chief economist of the National Association of Realtors, expects that housing starts will grow from 1.1 million this year to 1.4 million next year, as builders try to catch up to demand.
Panelists at the conference in Miami also noted a hesitation from existing home owners to sell their homes and buy a new one, also contributing to the price increases in real estate. This reluctance occurs either because the homeowners were financed at a low rate for their current home, or haven’t found a suitable new home. Without existing homeowners entering the market for new homes, builders, who are still recovering from the recession are discouraged.
Overall, an economy in the US that is growing stronger contributes to this flourishing real estate market. However, as we can see, other contributors to the market, like builders, must adjust to the rising demand. Until this happens sufficiently, supply will continue to dwindle and prices will continue to rise. That being said, there is no better time than right now to purchase a new home in Miami, before prices continue to climb nationally. Contact a RE/MAX Paradise agent today to help you find your dream home at the best price now!