Faster growth is heading our way, according to many economists. Today our “economy is firing on more cylinders than ever,” says Dr. James Paulsen. He notes that employment is going up and the federal deficit is falling in relation to the size of America’s overall economy.
Energy costs also could drop as new discoveries raise hopes for energy independence in the U.S. Lower fuel and power prices benefit every household and company in the country.
More jobs produce higher incomes for many Americans, points out Beacon Economics. And these positive developments are boosting the housing recovery.
Yet Beacon adds that “homes still appear to be underpriced from a long-run perspective. Home prices could rise by 35 percent or more from current levels” without being overpriced.
BETTER DAYS AHEAD
Numerous economists predict growth will be stronger in the second half of 2013, due in large part to increased job creation. While we may experience periods of reduced demand, the overall outlook remains one of sustainable progress, say many economists. Other experts believe we may be surprised by the vibrancy of economic activity in the near future.
Mortgage rates have edged upwards from all-time lows in recent weeks. Yet that also is a positive sign, since it suggests markets are foreseeing faster economic growth in the future.
Generally it’s best to buy a home when it suits your financial circumstances and lifestyle needs, rather than trying to time the real estate market. Enjoying affordable payments on a terrific place to live are huge positives.
Homeowners also gain tax advantages and can watch their property increase in value. Our normalizing real estate market should continue providing these great benefits in coming years.