Well regarded Moody’s housing analyst Mark Zandi is starting to feel good about the housing market.
The latest forecast by Moody’s Analytics shows the median existing home price will rise 6% to 7% this year followed by slight decline in 2013 as the housing market digests an increased number of foreclosed properties.
Last year, the median existing house price fell 4%, according to figures compiled by the National Association of Realtors.
“I do expect
Based on the S&P Case-Shiller house price index, Moody’s expects that HPI will rise 1.8% this year and 0.8% in 2013. The national Case-Shiller HPI fell 4% last year.
The Moody’s Analytics’ forecast calls for single-family and multifamily starts of 775,000 units by the end of this year. Next year those numbers look rosier at 1.1 million units, and 1.8 million units in 2014.
“I am optimistic the economic recovery and the recovery in housing will gain traction,” Zandi said during the NAHB construction forecast webinar.
He noted, however, that his forecast is based on Congress and the White House reaching a reasonable deal to resolve the country’s budget and debt problems. If they fail to avoid the “fiscal cliff,” it could push the economy to recession, he said.
