Economists Predict Gradual Improvement for the Housing Market and Economy in 2012

Check out this months Reality Check which takes a look at economists predictions for the housing market in 2012. Some notable highlights from this report:

  • Some top economists predict the worst of the downturn may be over and expect to see a gradual improvement in home sales and prices in 2012
  • Housing affordability is as good as its been since 1970 with reduced home prices and record low interest rates
  • Favorable market conditions and an improving economy are expected to lead to a 4-5% increase in home sales in 2012 according to National Association of Realtors (NAR) economists
  • Consumers should expect to see home prices gradually rise this year with inventory declining in many areas

Given  affordable home prices and historically low interest rates, buyers should consider jumping into the market right away before rates go up and lack of inventory causes prices to rise, which some speculate could happen in the second half of the year.

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