Categorized | Residential

Freddie Mac Expects Gradual Recovery to Continue in 2012

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According to Freddie Mac’s latest report regarding the expectations for the housing market in 2012, it looks as if the market will continue its gradual recovery. Those that were expecting the market to experience strong growth will likely be disappointed, as Freddie Mac believes that such a performance will not take place for at least another year.

Although strong growth is not expected for 2012, there is much to be happy with regarding the report. Analysts believe that the housing market will be in a better position at the end of this year than where it is right now. There are various positive signs of growth in the housing market, as consumer confidence and employment levels are expected to improve.

Unemployment has hit its lowest level in three years, and more than one and a half million jobs were added in the last year. Those numbers are expected to improve even further in 2012. As consumer confidence continues to grow, spending will likely increase as well. With increased spending, the job market should continue to improve, leading to a strong improvement in home sales.

With fixed mortgage loans hitting a new low in rates in the past week, housing sales should continue to show improvement. Analysts believe that residential property sales will likely increase by around five percent in 2012, and inventory levels should shrink to a six-month supply.

More potential homeowners believe that now is a great time to buy a home than in previous months, and if the market continues to show improvement, it is likely that those potential homeowners will opt to finally make a purchase.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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