The New Year is here and so are the predictions for the new housing market. After a strong end to 2014’s housing market, experts are predicting another robust year for the 2015. The infographic shown above is based on a National Association of Realtors (NAR) Chief Economist Lawrence Yun’s expectations for the 2015 housing market. 

A quick summation of Yun’s findings includes his prediction of an even better year for the housing market. He attributes the rising market to the bolstering United States economy, “solid” job gains and a healthy increase in home prices. Currently the United States gross domestic product (GDP) is over 4 percent. When GDP is this high economists label the nation’s economic state as “fantastic.” Historically, GDP growth average has been 3 percent. When it is above 3 percent the economy is considered that fantastic, when it is below 3 percent it is considered it sluggish and any negative percentages in GDP it is considered to be in a recession. 

In the past three years we have seen a 25 percent increase in overall home values. This is a result of the strengthening economy, building of equity and more confident homebuyers. According to Realtor.com “Fewer underwater homeowners and fewer distressed sales” are also aiding the increase. Yun’s research also highlights how distressed property sales have greatly diminished and contributed greatly to consumer’s confidence. 

Breaking it down into a list of pros and cons make it easier to understand what homebuyers, home sellers and homeowners have to look forward to this year. We can expect to see a 37 percent increase in new home sales, around 7 percent increase in existing home sales and a 4 percent increase in median home prices. Some of the potential obstacles that will come with these gains include a rise in mortgage rates, a shrinking pool of mortgage accessibility and some limitations for first time homebuyers. 

For even more details and in-depth conversation about the housing market from Chief Economist Lawrence Yun, click on the following link for a video: 

https://www.youtube.com/watch?v=U9g76qQ6VsU