If the National Association of Realtors (NAR) is right in its predictions, existing-home sales will rise from 7 to 10 percent in 2012. This increase would mark the highest level of existing-home sales in the past five years. The NAR based their prediction on an “uneven but higher sales pattern” they’ve seen so far this year.
The NAR said in releasing its latest Pending Homes Sales Index that pending homes sales fell a seasonally adjusted 0.5 percent from January to February, which was up 9.2 percent from the same time a year ago.
NAR Chief Economist Lawrence Yun said, “The spring home buying season looks bright because of an elevated level of contract offers so far this year. If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.”
In its latest economic forecast, NAR predicts existing-home sales will total 4.65 million in 2012, up 9.1 percent from last year. The forecast also assumes that the U.S. economy will grow at a 2.3 percent annual rate and add 2.7 million jobs in 2012.