Analysts predict new home recovery in spring
Now that the Super Bowl is out of the way, Americans can turn their attention to house hunting, according to Bloomberg.
CEOs from six of the 10 largest U.S. home builders said spring could bring a sales comeback, during conference calls in the last four weeks. According to forecasts from multiple groups, the new-home market will begin a rebound expected to last through 2012.
The National Association of Home Builders predicted a 20 percent rise in new home sales in 2011. Fannie Mae predicted an 18 percent gain, and the Mortgage Bankers Association estimated a 10 percent gain.
Spring is typically a popular time to buy, said John Burns, CEO of California-based John Burns Real Estate Consulting Inc., in an interview with Bloomberg. The weekend after the Super Bowl is traditionally when perspective buyers start looking.
“If that’s a good weekend for the builders, then we’re going to have a good spring, and if we have a good spring, we’ll have a good year,” he said.
Added Richard DeKaser, an economist at Parthenon Group LLC: “The spring market is going to be the first test of the proposition that there’s an underlying improvement in new-home fundamentals. If we don’t see the needle move, it will be very discouraging.”