As the economy continues to gain its momentum during the second half of the year, as was expected, despite a slow moving start at the beginning of 2013, according to Fannie Mae’s Economic & Strategic Research Group’s full-year forecast.
Both the economy and housing remain on track, Fannie Mae predicts, with GDP (gross domestic product) expected to come in at approximately 2.0 percent in 2013 and accelerating to 2.6 percent in 2014.
A largely optimistic report finds that fiscal drag is waning, as the housing recovery continues, and manufacturing and business investment are rebounding. Furthermore, consumer spending and the employment sector appear to be growing sustainably as well, which may help offset downside risks from an expected tapering of the Federal Reserve’s securities purchases.
The housing recovery looks to have weathered some of the uncertainty, although additional growth is expected to be modest rather than robust while the market is waiting to see credit conditions ease while interest rates rise. The rise in mortgage rates has led to a drop in refinance activity, but hasn’t seemed to impact home purchase activity so far.
Fannie Mae’s report is predicting that home prices will continue to climb, but at a slightly slower pace than the dramatic levels seen during the past 12 months. - All information gathered from Florida Realtors
Josh Parker is the Team Leader of ProFusion Property Group at Keller Williams Realty, Inc., located in Trinity, FL, and an active Tampa YPN Committee Member. ProFusion Property Group specializes in the listing & sale of residential real estate all over Pinellas, Pasco & Hillsborough County. His team has successfully sold over 175 units for their clients in 2012, while maintaining an exceptional “sold price to list price” statistic of 99.08%. For more information, free tips, and free home searches, please visit Josh & the ProFusion Team at www.profusionpg.com!