After the past recessions that have hindered the housing market, many people are wondering where the housing market may be headed in the next few years. While there are various opinions on the exact direction and the time frame that corresponds to the outcome, there are several factors that give us a pretty intelligent indication of where the real estate market for housing is headed.
According to Mark Boud, chief economist for Metrostudy, residential housing starts will continue a slow and steady climb between now and 2020 when the number of new single family housing units will reach 1.45 million units. This number will finally be equal to the housing industry’s long-term yearly average. He also forecasts the following:
- The national housing market will continue to remain under-supplied (as it is currently) through 2020.
- The market is overloaded with higher-priced housing and an overt shortage of lower-priced “starter” homes.
- Most markets should see a continuing opening for land purchases and developments in the next two years.
- Overall, the price of housing is still overvalued somewhat, although not as much as the years prior to the last housing recession.
For a more detailed breakdown by Mr. Boud, please view his full forecast here: