Metrostudy's National Residential Economic Report is a modeled forecast released quarterly of over- and under supply of housing in the nation, as well as over- and under valuation, which impacts the future of housing most significantly. The five-year forecast is further informed by recurring national indices that track construction starts, employment, and other key indicators, and provides Metrostudy a framework to forecast the future state of housing across the nation, and in major markets.
Based off the findings in the fourth quarter report:
- Metrostudy expects housing shortages will become more intense. Look for an accelerated and shorter, sharper real estate cycle, with a peak in the 2018/2019 time frame.
- An extended period of low mortgage rates has allowed home prices (and land values) to rise higher and more rapidly than they should have. Rising mortgage rates may contribute to housing over valuation in many markets, despite only modest price appreciation being forecast for the next few years.
In this video, Senior Vice President and Chief Economist of Metrostudy Mark Boud gives a rundown of Metrostudy's National Residential Economic Report for the fourth quarter of 2016. The report is also available for every major metropolitan market--access your market here.