Housing predictions of forecasts

Housing will pick up to its fastest pace ever in 2017. No wait, it will see a slowdown due to affordability constraints. No, that’s not right, affordability is at its best point in years.

Are you having trouble keeping up with all the forecasts for 2017, or wondering which forecast is the most accurate? It’s easy to get lost this time of year, when economist everywhere begin pouring out their forecasts for the next year.

While I won’t tell you who to believe, I can show you the difference between the experts, and where their forecasts are coming from. From there, you’re on your own.

Redfin came out on Tuesday with its prediction that homes would begin flying off the market. It had a positive outlook of the economy and said the technology in 2017 would help sell homes at the fastest pace ever. Well of course Redfin would say that. It’s an online brokerage.

But, that’s not to say their predictions aren’t without merit. This year did break the record as the fastest market on record, and many technological improvements are taking place that could improve that for next year.

And not only that, but economists are predicting a coming surge in Millennial homebuyers, who will expect a quicker online experience.

Redfin still recognized the affordability constraints, but put existing home sales at a growth of 2.8% for 2017.

On the other hand, the National Association of Realtors was much more somber in their report. Could it be because companies such as Redfin are causing real estate agents to have to lower their commission, Redfin’s sixth prediction, in order to compete with the growing only brokerages?

Whatever the cause, NAR predicted an increase of just 2% in existing home sales due to affordability constraints. But these predictions are based on a consumer survey, which showed more consumers saying that now isn’t a good time to buy a home.

Less consumers said now is a good time to buy in the fourth quarter, after interest rates shot up.