Dive Brief:
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Sales of existing and new homes will end the year on a high note, the National Association of Realtors Chief Economist Lawrence Yun predicted on Wednesday.
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Writing in his latest Economic and Forecast Update, Yun said he expects 5.8 million home sales in 2015, up 7% from last year. That volume is approximately 25% below the industry’s peak sales during the housing bubble a decade ago, Yun said.
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Revenue in the housing industry will increase by 14% in 2015, the economist predicted. Next year, revenue growth will spike another 7% to 10%, he said.
Dive Insight:
Yun’s optimistic forecast has its basis in housing’s promising performance in May, when existing-home sales hit their highest mark since 2009 and pending contracts on existing homes hit a nine-year high.
He also noted that the share of first-time homebuyers increased to 32% in May, up from 27% one year ago.
Still, the housing industry has a few hurdles to overcome, including a shortage of homes for sale, which is driving stronger-than-normal home price growth, Yun said.That has led to a lack of affordable housing.
