Resale Housing Outlook from TD Bank
HIGHLIGHTS
- The real economy and housing markets have been largely out of sync since early this year, with the former contracting and the latter bursting at the seam with activity.
- After plummeting last fall, sales of existing homes have rebounded sharply, buoyed by better pricing and low financing costs.
- Much of the rebound is attributable to the absorption of demand pent up during the fall. By our estimates, however, that source of near-term demand will have dried up by November.
- While listings are set to rise, home sales should remain well enough supported in 2009 and 2010 to generate modest price gains.
- Looking out further to 2011, eroding affordability will weaken demand. Meanwhile, supply has turned the corner and should increase throughout the forecast horizon. Both factors combined point to an easing in price growth.