The National Association of Realtors is projecting that existing home sales will rise 16% from 2012 to 5 million this year.
“Steady job creation and household formation have been helping to unleash demand in the housing market,” said NAR chief economist Lawrence Yun.
Yun estimates that 51% of renters are financially qualified to purchase a home, up from 24% on 2005. If lenders dialed down their stringent lending standards, home sales could be 15% to 20% higher.
Meanwhile, the median price of a previously owned home rose 6.4% in 2012 and NAR expect prices will be up 8% by the end of this year.
“Double-digit price gains are within reach in 2013 because inventory is bouncing near 13-year lows,” Yun said. However, price growth will likely be moderate later this year as builders increase their production of new homes.
