{"id":7885,"date":"2018-01-23T00:00:00","date_gmt":"2018-01-23T00:00:00","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/3-reasons-home-sales-may-lose-momentum\/"},"modified":"2018-01-23T00:00:00","modified_gmt":"2018-01-23T00:00:00","slug":"3-reasons-home-sales-may-lose-momentum","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/3-reasons-home-sales-may-lose-momentum\/","title":{"rendered":"3 Reasons Home Sales May Lose Momentum"},"content":{"rendered":"

\n<\/p>\n

<\/p>\n

The housing<\/a> market and economy are starting the year with a fairly strong start, but several challenges persist in 2018. Freddie Mac economists point out some of the biggest risks to the economy and housing markets: declining affordability, obstacles to millennial homeownership, and the possibility of another recession.<\/p>\n

Home sales, housing construction, and housing prices are expected to move modestly higher in 2018 compared to 2017, Freddie Mac notes. The economy is also predicted to grow, but \u201cwe don\u2019t expect it to be strong enough to generate income gains that will keep pace with house prices, resulting in declining affordability that can slow housing market activity,\u201d Freddie Mac\u2019s report notes.<\/p>\n

Millennials moving out of their parents\u2019 home and into their own is still a hurdle. In 2016, about 15 percent of young adults aged 25 to 35 were still living in their parents\u2019 home. That is five percentage points higher than in 2000. \u201cWith modest income growth, the high cost of living and high student debt, young adults are struggling to move out of their parents\u2019 homes and form their own households,\u201d Freddie Mac notes in its report.<\/p>\n

Also, economists caution that a new recession could potentially happen. Economists say they are watching recession indicators closely, such as the flattening of the U.S. Treasury yield curve and the current rate of unemployment (which was 4.1 percent in December 2017). An inverted yield curve and an unemployment rate below the natural rate have\u00a0historically led to a recession within two to three years, Freddie Mac notes.<\/p>\n

\u201cStarting off the year, things are looking pretty good for the U.S. economy and housing markets,\u201d says Len Kiefer, deputy chief economist at Freddie Mac. \u201cMortgage rates are low, economic growth has accelerated in recent quarters, and housing is coming off its best year in a decade. Although housing markets have been improving year-after-year for nearly a decade, there\u2019s still room for improvement.\u201d<\/p>\n

\"\"Freddie Mac forecasts moderating growth in U.S. housing market activity throughout the next two years.<\/p>\n

\u201cThere are factors worth keeping an eye on in 2018, namely:\u00a0another recession [may be] on the horizon, how housing markets will\u00a0<\/span>respond to declining affordability and how young adults will\u00a0<\/span>move the housing market\u2015more are living at home with their parents today than in 2000,\u201d Kiefer says.<\/p>\n

Source: Freddie Mac<\/em><\/p>\n<\/div>\n

Realtors <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The housing market and economy are starting the year with a fairly strong start, but several … 3 Reasons Home Sales May Lose Momentum<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":7886,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[2890,12908,543,627,127,617,344,3781,1007,41,818,479],"class_list":["post-7885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-construction","tag-home","tag-home-buying-guide","tag-homeowners","tag-homes","tag-house","tag-housing","tag-housing-markets","tag-owners","tag-property","tag-real","tag-realtor"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/Freddie-Mac-chart.jpg?fit=300%2C203&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":651,"url":"https:\/\/amazingproperty.com.ng\/blog\/uncertainty-plagues-the-housing-market\/","url_meta":{"origin":7885,"position":0},"title":"Uncertainty Plagues the Housing Market","author":"Amazing Property","date":"February 6, 2017","format":false,"excerpt":"[ad_1] The prospect for growth in the housing market in 2017 remains solid, but that said, some anxiety may taper growth somewhat this year, according to Freddie Mac\u2019s latest 2017 Outlook report on the housing market. Read more: Uncertain Times Are No Match for Seasoned Agents \u201cWe must grapple with\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3869,"url":"https:\/\/amazingproperty.com.ng\/blog\/urgency-increases-for-first-time-buyers\/","url_meta":{"origin":7885,"position":1},"title":"Urgency Increases for First-Time Buyers","author":"Amazing Property","date":"April 26, 2017","format":false,"excerpt":"New buyers are gradually increasing their stake in the housing market. First-timers comprised 32 percent of existing-home sales in March, up from 30 percent a year ago and 29 percent in 2014. The looming threat of interest rate increases may be prompting more buyers to enter the market this year.\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6279,"url":"https:\/\/amazingproperty.com.ng\/blog\/slowing-ontario-market-may-produce-mild-hangover-for-economy\/","url_meta":{"origin":7885,"position":2},"title":"Slowing Ontario Market May Produce 'Mild Hangover' For Economy","author":"Amazing Property","date":"September 18, 2017","format":false,"excerpt":"The real estate market in Southern Ontario has enjoyed a decade of growth, taking only a short breather in 2008. But the provincial government changed all that in April when it introduced a 16-point plan to slow down the market. Since then, sales and prices have dropped.\r \r Interest rates\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"a7d3cf24e6675f552588d2ff76a7032b_S.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/09\/a7d3cf24e6675f552588d2ff76a7032b_S.jpg?fit=424%2C276&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3778,"url":"https:\/\/amazingproperty.com.ng\/blog\/will-lower-rates-create-buyer-frenzy\/","url_meta":{"origin":7885,"position":3},"title":"Will Lower Rates Create Buyer Frenzy?","author":"Amazing Property","date":"April 24, 2017","format":false,"excerpt":"Mortgage rates have dropped below 4 percent for the first time since November, and home buyers likely will want to take advantage of the lower borrowing costs. The average 30-year fixed-rate mortgage fell to 3.97 percent for the week ending April 20, according to Freddie Mac's weekly mortgage market survey.\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1473,"url":"https:\/\/amazingproperty.com.ng\/blog\/10-best-and-worst-states-for-millennial-buyers\/","url_meta":{"origin":7885,"position":4},"title":"10 Best and Worst States for Millennial Buyers","author":"Amazing Property","date":"March 1, 2017","format":false,"excerpt":"[ad_1] Millennials have it rough: They're being slapped with a trifecta of housing affordability, credit accessibility, and employment issues, all of which are hampering their ability to buy, according to new report by Bankrate.com. The toughest state of all for millennial buyers may be California, where affordability is low, inventory\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2655,"url":"https:\/\/amazingproperty.com.ng\/blog\/freddie-to-aid-those-without-credit-scores\/","url_meta":{"origin":7885,"position":5},"title":"Freddie to Aid Those Without Credit Scores","author":"Amazing Property","date":"March 28, 2017","format":false,"excerpt":"Mortgage financing giant Freddie Mac has expanded access to credit for American families without credit scores. Beginning in June, borrowers without credit scores may be able to easily qualify for purchase mortgages or no-cash-out refinance transactions. Still, borrowers will have to show payment references, like records showing timely housing payments.\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/7885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=7885"}],"version-history":[{"count":0,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/7885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media\/7886"}],"wp:attachment":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=7885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=7885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=7885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}