Housing experts say U.S. home sales and construction should rise sharply this year, but the increases hinge on the economy adding more jobs.
Two economists delivered their forecast Wednesday at the International Builders’ Show in Orlando, Fla.
National Association of Home Builders Chief Economist David Crowe says he expects home sales to rise about 26 percent this year, albeit from near-historic lows in 2010. He sees construction climbing 21 percent.
Crowe’s forecast calls for the unemployment rate to get no worse than 9.4 percent.
He sees home prices remaining flat and rising slightly in 2012.
Freddie Mac Chief Economist Frank Nothaft expects home prices to bottom out this year. His forecast calls for mortgage rates to hit 5.5 percent by the end of this year.
What is the source of this optimism considering projections of an additional 1.2 million foreclosed homes on the market in the same period?