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Positive signs spark upwardly revised predictions

March 14, 2013 @ 8:47 am

Several economists have recently revised their predictions on housing values to reflect a stronger-than-expected real estate rebound.

Paul Diggle, Capital Economics' economist, upwardly revised his home price forecast from a 5 percent projection to an 8 percent rise in home prices this year.

"Prices of both new and existing homes are picking up, the latter by over 10 percent year-on-year," Diggle wrote. "Indeed, after a couple of years during which new house prices outperformed, primarily owing to builders constructing more homes for the higher-end market, we now expect existing house prices to close the gap. As more consumers are able to access mortgage credit, home builders should widen their offering, while continued investment demand will bid up existing house prices."

Ivy Zelman, an independent real estate analyst, told CNBC last week that "we're in a nirvana for housing. I'm the most bullish I've ever been." Zelman said that home prices could rise for another four to six years.

Economists at Bank of America revised their home price forecast from 4.7 percent this year to 8 percent.

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  • SickofSeattleite wrote...
    several economist have recently revised.....where was there expert advise
    March 15, 2013 5:41 am
    when we were all getting taken advantage of by our govt through Fannie and Freddie? Did the have any housing market advise in 2004-2009? Several economists....=reporter can not sight source therefore this article is hearsay...don't believe everything you read....Seeing is believing. I am seeing empty vacant houses and business going out left and right. I do not see recovery anywhere!
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  • Hayduke wrote...
    No!...must....not.....recover!....
    March 15, 2013 11:30 am
    Truth hurts, don't it? Everyone knows Republicans have not only been hoping for a continued recession to make Obama a one-termer, they've actively tried to GUARANTEE it. Surverys have shown that even a large percentage of GOP voters believe that.

    Sorry, SickofSeattleite. As much as the GOP tried to derail the recovery, it's happening, whether you like it or not.

    Say..., maybe you guys can try to give Bush credit for the recovery, LOL. After all we're only allowed to bring up all the supposedly good things he did, and not the bad, right?

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