Lending giant Fannie Mae recently released its January Economic & Housing Outlook, a monthly report that analyzes economic trends in the housing and mortgage-finance markets. The forecast shows that 2013 and 2014 will likely show below-potential economic improvement, with only a 2 percent growth rate expected for this year.
“What we view as sub-par economic growth may actually continue to be par for the course for the near term,” Fannie Mae chief economist Doug Duncan was quoted as saying. “We expect the fiscal policy climate to act as a drag on growth this year with possible implications on the direction of the economy in the long term.”
According to Fannie Mae, the debate surrounding the fiscal cliff and uncertainty about the debt ceiling have contributed to the halt in consumer spending, and these factors will likely continue to affect people in 2013.
One of the main bright spots in the report, however, is the housing market, which the lending giant expects will see a continued recovery in the coming years and may even contribute to overall economic growth.
Experts predict that housing starts, for example, will increase from 775,000 units to 950,000 units in 2013, which is far below the peak in 2005, but a significant improvement compared to the record-low reached in 2010. Existing-home sales are expected to reach 5 million units in 2013 and mortgage rates will remain low – two additional factors that indicate ongoing positive trends in the housing market this year.
With this information in mind, 2013 may be a good time to think about buying or selling a home. That being said, it’s a good idea to work with an experienced professional who knows how to navigate a complex industry. If you’re interested in doing business in or around the Capital Region, contact a New York real estate agent today.
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