A new Housing Peak by 2015 followed by another Housing Boom?
As the housing industry has been vastly approaching the stage of a full recovery across the Country, both in terms of the numerical figures as well as in the populations mass opinion, the notion of a future housing boom has arisen. Many factors have led onlookers and expert economists alike to believe such a takeoff may be on the horizon. First, there is the improvement in National home sales, the construction industry, home prices and also the fact that foreclosures are down as are mortgage rates which are incredibly so.
Barclays Capital is one of the driving forces behind all of this optimism. They note that after the housing boom in 2007, things went dramatically bad in the Real Estate market as home prices have fallen more than one third since. 2015 is seen as the year when the same peak levels from 2007 will once again be achieved for housing prices and that it very well may continue in an upward direction thereafter.
One of the Barclays analysts, Stephen Kim, points out in a message to their clients that, "In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing starts." Finally, Kim stated that for home prices, the expected level of appreciation should sit anywhere from a 5%-7.5% positive change annually as of this year of 2012. Ultimately, it becomes quite clear that now is the ideal time to purchase due to the very near future having such lofty predictions regarding the future direction for housing prices.
More Information: CNN Money
