Economic forecast: Good news

A recent talk by Lawrence Yun at the Realtors Conference & Expo highlighted the need for new housing inventory and expressed confidence that the real estate market would remain strong. He predicted that around 6 million home sales by the end of 2018 and slightly more in the next few years.

Moreover, home prices will continue to increase but at a modest rate: 4.7 percent this year, 2.1 percent in 2019 and 2.7 percent in 2020.

Yun saw no signs of a housing bubble as the overall economy is strong, the quality of mortgages remains high and there is no danger of overbuilding as in 2008.

The one caveat is the risk of a full-scale trade war which would hurt economic growth and lead to higher interest rates which could move the economy closer to a recession.

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