Fannie Mae’s Economic and Strategic Research Group hypothesizes we’ll continue to struggle and see only modest economic growth through the end of 2013. The forecast is based on several factors, such as the temporary government shutdown, debt ceiling negotiations, and appointment of a new Federal Reserve Chair in January. All these various factors are predicted to suppress consumer spending for the remainder of 2013.
However, the Group further predicts we’ll see economic growth of up to 2.5% in 2014, once fiscal concerns dissipate and labor market conditions further improve. The Group further concluded that attitude towards the housing market has worsened due to the above mentioned factors and despite the low interest rates home price growth expectations continue to be moderate.
What does all of this mean for homeowners associations? Will associations see fewer sales in their communities? Will property values still continue to increase, if only a little bit? Please share your thoughts and experiences.