A new report from Fannie Mae predicts optimistic home sales data for 2012,with forecasts projecting in new home sales a rise of 10.4 percent and for existing-home sales an increase of 3.5 percent, or, 4.74 million units, for the new year.
The second half of the year will likely outpace the first, the report stated, and that momentum should carry in to 2013, where sales could surpass 5 million units and increase by 5 percent.
The report released Friday forecast total home sales to increase 3.5% to about 4.74 million in 2012 from 2011 with another 5 percent gain in 2013 to nearly 5 million. New home sales could jump 10.4 percent for 2012.
Doug Duncan, Fannie’s chief economist, kept his predictions modest, noting though that 2012 would be an improvement over the fearful state of 2011.
“We’re entering 2012 with decent momentum, especially on the employment side, which is fostering positive household and consumer behavior. Unfortunately, we expect this momentum to slow as we move through the first half of the year,” Duncan said. “2012 will be replete with policy changes and challenges that involve the global economy, the domestic economy, and the housing sector. We expect the net effect will be a year of moderate growth edging away from the 2011 threat of a double dip.”
As HousingWire noted, Fannie’s predictions for home sales are accompanied by several other promising readings. For the overal GDP, Fannie predicts an increase of 2.3 percent for both 2012 and 2013, over an estimated 1.7 percent in 2011. Also, purchase mortgages are expected to rise by $7 billion to $471 billion, and total single-family mortgage debt will drop by 1.3 percent in 2012 to $10.14 trillion.