According to a forecast from the NAR, existing home sales is projected to increase 3.5 percent, to 5.64 million, this year and 2.8 percent, to 5.8 million, in 2018.
New home sales are expected to increase as well, rising 10.7 percent this year (to 620,000) and 8 percent in 2018 (to 670,000). New home prices are slated to rise 5 percent this year and 3.5 percent next year.
Realtor.com says that factors such as a thriving stock market, strong job growth, high consumer confidence, and pent-up household formation will push people into buying homes, despite the problems with the housing shortage.
New homes are typically more expensive than existing homes, as builders must contend with shortages of land and labor, plus rising costs of materials and difficulty obtaining financing.
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