Home sales will increase in 2015, according to market experts taking part in a Bloomberg poll.
According to the median forecast of analysts and economists participating in the survey, new-home sales will surge 16 percent to 510,000 and existing-home sales will rise 5 percent to 5.21 million. Housing starts will also improve, moving 15 percent higher to 1.15 million units. One factor that could help fuel this improvement is an easing of lending standards, which 18 of 24 experts forecast. However, one market expert provided a completely different point of view.
Lenders might become less stringent in their lending as the economy improves and the housing market grows stronger, Susan Wachter, a professor of real estate at the University of Pennsylvania's Wharton School, told the media outlet. "On the other hand, the Fed is ending its support mission. And while there is much discussion of encouraging lending through institutional easing, the fundamental fear factors that drive overlays contributing to tightness have not been revoked. I think the latter will outbalance the former, but it is a close call."
Lawrence Yun, chief economist of the National Association of Realtors, recently commented on lending standards, singling them out as one factor that could be undermining real estate professionals' optimism in the housing market. He also noted shortages in inventory as a variable that could have contributed to NAR's monthly Realtors Confidence Index falling in 2014.
However, he emphasized that home price appreciation is causing household wealth to grow, and that consumer sentiment is burgeoning as the labor market improves.
Real estate professionals who want to take advantage of the anticipated improvement in the housing market might benefit from using CRS Data to gather information, including mortgage records and warranty deeds. To learn more about CRS Data, click here.