The housing market's recovery could make significant progress in the next couple of years, as long as there are not major economic issues hindering further gains.
The National Association of Realtors explained at the 2012 Realtors Conference and Expo, that there could be significant improvements in the market for many reasons, especially those showed in recent property data reports.
"Existing-home sales, new-home sales and housing starts are all recording notable gains this year in contrast with suppressed activity in the previous four years, and all of the major home price measures are showing sustained increases," said Lawrence Yun, chief economist for the National Association of Realtors.
Projecting real estate records, NAR noted existing-home sales should jump 9 percent this year, to a rate of 4.64 million. Additionally, Next year, more than 5 million units will be sold, which is an increase of nearly the same amount. In 2014, another 5.3 million units should be sold.
There should be close to 368,000 new homes sold this year, which would be markedly higher than the previous figure of 301,000 units, according to the report. This should rise significantly to 575,000 next year. There will likely be 776,000 housing starts this year, which is more than 100,000 units than last year's level. In 2013, the figure should eclipse 1.13 million.
Economic conditions may strengthen in next few years
There are some worries about the market's situation, especially due to potential economic problems. NAR explained that the fiscal cliff and a lack of credit availability could have a large effect on the market.
However, one aspect of the market that shouldn't be an immediate problem is the inflation rate, as the NAR noted it should be between 4 and 6 percent in the next three years. Next year, the Gross Domestic Product should grow by 2.5 percent next year, as well as 2.1 percent this year.
Confidence was high from consumers in recent months, and home sellers also experienced improved levels of sentiment, according to a report from Redfin. Only 40 percent of Americans noted the economy was a problem for selling properties during the fourth quarter, which was nearly 10 percentage points lower than the third quarter's reading on the topic.