Last week the National Association of Realtors, of which I’m a member, gave us some news that lifted us out of despair about a potential “fiscal cliff.” At a national conference in Orlando, chief economist Lawrence Yun, shared his forecast that the housing market uptrend should continue through 2014. He said that the housing market has clearly turned around this year, and provided there are no further limits on the availability of mortgage credit, its positive momentum will continue to underlie broadening improvements in our economy.
"Existing-home sales, new-home sales and housing starts are all recording notable gains this year in contrast with suppressed activity in the previous four years,” he said, “and all of the major home price measures are showing sustained increases. Real estate will be a hedge against inflation,” he further explained, “with values rising 15 percent cumulatively over the next three years, also meaning there will be fewer upside-down home owners.”
New-home sales are expected to increase to 368,000 this year from a record low 301,000 in 2011, and grow strongly to 575,000 in 2013. Housing starts are forecast to rise to 776,000 in 2012 from 612,000 the year before, and reach 1.13 million next year.
This report and the latest news about real estate nationwide can be found at The National Association of Realtors® website, www.realtor.org. The Association, known as "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.