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.
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.
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.
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.