CEO makes bold prediction on housing market as trend signals positive outlook
FILE-A 'For Sale' sign is posted in front of a house in Hollywood, Florida. (Photo by Joe Raedle/Getty Images)
The housing market has seen a lot of volatility this year from high mortgage rates to expensive home prices, but one CEO believes the market will improve going forward.
Inter Ikea CEO Jon Abrahamsson Ring, who oversees the franchisees in all 63 markets, thinks that more consumers will invest in their homes, which may result in an increased demand for home furnishings, including kitchen products.
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Ring tells FOX Business that the company is already noticing that the home furnishing space is gaining some traction, and he expects that trend to continue in the latter part of 2024.
He also predicts that by 2026, kitchens will be lucrative for the company based on lower interest rates and improvement in inflation that may boost consumer confidence and spending.
Lawrence Yun, a chief economist with the National Association of Realtors, tells FOX Business that signs connected to more home sales are starting to appear. He explained that there are more choices available for buyers, mortgage rates are lower than last year, and jobs are still being added to the economy.
Mortgage rates rose for a fourth consecutive week, with current mortgage rates averaging 6.54% for a 30-year fixed-rate loan, compared to 2023 when a 30-year loan was 7.79%.