Housing Will Improve in 2012
Based on article from Housing Wire
Given that the economy hasn't been the greatest strength during the past few years, it isn't overly surprising that the housing industry will show signs of improvement--because it couldn't get too much worse! Even with this observation, improvement is still positive and is a sign of overall economic success:
Gradual improvement in the housing market is expected next year, with existing-home sales edging up 4% to 5% and new home sales getting an even bigger boost.
"There is a sizable pent-up demand based on population growth, employment levels and a doubling-up phenomenon that can’t continue indefinitely," Lawrence Yun, chief economist of the National Association of Realtors, said
Yun, who made his comments during the annual NAR conference for real estate agents under way in Anaheim, Calif., projected gross domestic product growth rising to 2.2% in 2012 - an increase of over 20%, relative to 2011.
Mortgage interest rates, he predicted, would gradually rise from record 2011 lows to 4.5% by the middle of 2012.
"Very favorable affordability conditions will dominate next year as well, which will probably be the second best year on record dating back to 1970. Our hope is that more home buyers will take advantage of the current opportunities."
New-home sales for 2012 are projected at to rise about 23% to 372,000 in 2012.
With falling inventory, the median home price should rise in 2012, he said. "Given an over-correction in prices, there likely will be moderate appreciation in 2012," Yun said.
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See full article featured in Housing Wire, "Housing to gradually improve in 2012"
