The U.S. housing market has been sending mixed signals this whole year. The first few months saw a cold freeze, while the spring and summer saw activity picking up. So what could one expect from the housing market this fall?
This autumn will be the harbinger of good news for the housing economy, several experts say.
Inventory Increase to Release Demand
According to Bankrate.com's predictions, there will be an overall uptick in the housing economy as inventory increased in most markets that could help release the pent up demand. Housing inventory stood at 2.3 million at the end of August, which about 5.5 percent above the figures recorded a year ago.
Economic Strength
The U.S. economy has been performing well in the past few months. Employment, industrial production and consumer spending have all posted strong growth, which paints a bright picture for the fall housing market.
Seasonal House Hunting Trends
As buyers are becoming cautious about making a property decision, housing growth is expected to be divided among regions. Usually, housing activity in warmer climates slide during the fall season. According to a recent report on seasonal home hunting by Trulia, Hawaii and Florida will see significant drops in housing activity while it is expected to increase in Maine, Wyoming and Vermont.
Below is a map that shows house hunting trends in the fall:
Mortgage Rates
As the economy grows and with the end of the Federal Reserve's bond-buying scheme, mortgage rates are expected to tick up soon. The fed kept rates at record lows to boost buying and now that the employment and jobs scenario continues to improve, rates could go up.
