NAR Sees Home Prices Rising in 2014, Rates Jumping to 5.4%

November 14, 2013

in News

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As chief economist of the National Association of Realtors, the housing industry’s biggest cheerleader, Lawrence Yun often has an optimistic outlook. On Friday, he embraced a bit of caution. Mr. Yun outlined his housing-market forecast for 2014 at NAR’s annual conference, predicting that existing home sales will remain flat at roughly 5.1 million units, prices will rise by 6% and interest rates, currently at 4.16%, will jump to 5.4% by the end of next year. The economist said he crafted his outlook based on his assumptions that opposing forces will keep sales volumes at their 2013 levels. He foresees buyers emboldened by strengthening job growth and potentially more lenient mortgage-qualification standards. Mr. Yun foresees that in contrast to existing home sales remaining flat, sales of newly built homes will increase by 18.5% to 510,000 from 430,000, with new-home prices rising by 5% next year. [Read this article]

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