The housing market is in recovery mode, but overall activity still remains near historic lows, according to Freddie Mac’s U.S. Economic and Housing Market Outlook for February.
"Across the nation, most local housing markets have room for sustainable growth, particularly in home construction and sales,” says Frank Nothaft, Freddie Mac’s chief economist. “As the broader economy heals, expect to see more good news with house prices continuing their recent upward trend, and home sales and housing starts continuing to post strong growth rates.”
Housing starts are projected in 2013 to rise 22 percent higher than 2012 levels, reaching 950,000 units, according to the mortgage giant. Existing-home sales are also expected to increase among owners who have been waiting on the sidelines by equity finally returning as housing values rise, according to Freddie Mac’s report.
The housing recovery also is starting to contribute to the overall economic recovery. “Housing is now 'showing some love' by contributing to economic growth, perhaps by adding close to 0.5 percentage points to 2013 GDP growth," Nothaft says.
Source: Freddie Mac