Dive Brief:
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Wells Fargo economists on Thursday dismissed predictions by many of their peers that the housing industry is in for a nosedive.
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As the economy continues to improve in response to diminishing unemployment, growing Gross Domestic Product and healthy consumer spending, home sales will pick up, too, the economists said in Wells Fargo's Housing Chartbook for October.
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In the outlook, the economists said real GDP growth, which grew 4.6% in the second quarter of this year, will rise an average of 3% a year through 2016.
Dive Insight:
The Wells Fargo outlook points to two positive reports in the housing industry: a September National Association of Home Builders’ poll that revealed strong optimism among builders, and the largest surge in new home sales since 2008, which occurred in August.