According to a recent report from MarketWatch, the housing market could make a mild recovery during 2012. However, due to the lows the real estate industry sunk to in 2011, it may not be enough to turn the entire market around.
National Association of Home Builders chief economist David Crowe revealed to the news source that housing starts could surge to 700,000 this year from 600,000 in 2011. Meanwhile, existing-home sales may increase to 4.4 million from 3.8 million during the same period. Many of these sales are for foreclosed houses, as buyers capitalize on their affordable prices.
"But we are going from the worst year for starts ever, or at least as far back as we can go to 1942, and the worst year for new-home sales since we started collecting that data," Crowe said. "This is not going to be a great year."
Meanwhile, Freddie Mac chief economist Frank Nothaft posited that the improving economy could help increase home sales as more borrowers start to gain confidence in making significant financial investments. As a result of the anticipated improvement in buyer sentiment, Nothaft says that sales could increased by as much as 2 to 5 percent.