According to BloombergBusinessWeek‘s survey of 15 economists and housing analysts, existing home sales will increase 7.2 percent in 2013 to 4.98 million, the most since 2007. Prices will move up 3.3 percent this year, a slight retreat from the 4.5 percent rise in 2012. The loss of inventory in 2012 will lead to a 24 percent spike in single and multifamily housing starts this year of 967,000 units, again the best number since 2007. These are median estimates of the respondents polled. MHProNews has been informed 17 analysts have predicted 448,000 new single-family houses will be sold in 2013, an increase of 23 percent. Mark Kiesel, of Pacific Investment Management Co. in Newport Beach, Calif., who predicted the 2006 bursting of the home price bubble, says, “Residential investments potentially could grow between 20 percent and 30 percent” in 2013, adding as much as 0.75 percent to U.S. gross domestic product growth.
(Photo credit: BloombergBusinessWeek)