Tag Archives: Forecast

The housing market will continue its gradual recovery and gain momentum in 2015 after a disappointing 2014, according to the Wells Fargo Economics Group 2015 Economic Outlook entitled "A Whole New Ballgame," released earlier this week.

After trudging along a sluggish track in 2014, the market for new homes is projected to make a comeback next year, Fitch Ratings says in a new forecast.

In a year that's seen promising—albeit unspectacular—growth, economists agree that one sector of the U.S. economy disappointed: the housing market.

In her outlook, IHS economist Stephanie Karol focuses on two major trends that have shaped the housing market in 2014: low household formation and diverging trends for new versus existing-homes.

The year 2015 is gearing up to be a stronger, more expensive housing market powered for the first time by new millennial buyers, according to the Realtor.com 2015 Housing Forecast.

While millennials so far have yet to find their place in the housing market, the stage is set for younger Americans to become the driving force in the residential sector in 2015, according to a forecast from Zillow.

Looking at the larger economic picture, the economists predict a 3 percent growth rate for gross domestic product (GDP) in 2015, which would mark only the second year in the past decade in which growth was at 3 percent or higher.

If Pollard is correct, the impact on the U.S. economy would be seismic. Overvalued homes, according to his report to President Obama, make up $23 trillion of consumer asset value and "serve as the psychological linchpin" for $17 trillion of invested capital.

The latest economic forecast from Fannie Mae shows that the underwhelming performance of the economy in the first three months of the year and a shrinking GDP have significantly dulled the optimism economists once had for the overall 2014 economy.

Despite a disappointing first quarter and a mediocre second quarter, Freddie Mac still expects the economy to improve throughout the second half of 2014. The company is, however, tempering its New Year's optimism. In its June U.S. Economic and Housing Market Outlook, Freddie offers a mid-year assessment that sees more humble growth in gross domestic product that mirrors the 2 to 2.5 percent growth that the economy has seen the past few years.