The chief economist for the National Association of Realtors, Lawrence Yun, is predicting a strong market in four of the next five years, based on the following confluence of positive trends. After a slow start this year, partly due to the frigidly cold winter, home sales are picking up steam. Existing-home sales have risen for four straight months and in July were at the highest pace of the year, 5.15 million. Pending contracts point to more gains, too.
All in all, the housing market is steadily improving, and growth potential remains strong thanks to continuing pent-up demand. For these reasons, they are forecasting growth in four of the next five years. (The one down year simply reflects the reality that data never moves in a straight line in any direction.) Look for annual sales to reach well beyond the 5 million mark in the near future.