Categorized | Residential

Economists Have Positive Yet Cautious Outlook on Job and Housing Market

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According to the most recent surveys regarding the job and residential real estate markets, economists are still very much upbeat about their growth and overall health. With that being said, however, they are also continuing to urge people to be cautious in their investment activities just in case the nation faces a worst-case scenario.

The majority of economists believe that the market will experience a slight gain for the rest of 2012. The real growth, they believe, will start in 2013. Despite the expected growth, the figures will still be below where they have been historically.

Housing starts are expected to increase by roughly eighteen percent this year, and another twenty percent in 2013. The residential real estate market will experience a strong portion of the market gains. Most of those buying into the real estate market at this point are investors looking to rent out, and then eventually sell the property.

One factor that could expedite growth in the housing market is the easing of lending restrictions of behalf of the banks. While mortgage rates for fixed-rate loans are the lowest that they have ever been, the majority of new homebuyers are unable to secure the financing they need to buy a home.

As the unemployment rate continues to drop, lending restrictions should be lifted. Banks will be less likely to view lenders as risks if the job market as a whole is more stable than it is at the current point in time. Economists believe that the unemployment rate will reach an adequate level by the end of 2013.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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