Economists surveyed by the Urban Land Institute predicted fairly broad and optimistic improvements in real estate fundamentals over the next three years, with housing starts nearly doubling from their 2011 levels and home prices rising by 3.5% in 2014.
The ULI report, compiled from interviews with 38 economists and market analysts, concluded single-family housing starts will rise from 428,600 starts in 2011 to 500,000 in 2012. From there, starts are forecasted to jump to 660,000 in 2013 and 800,000 in 2014.
The average home price is expected to remain steady in 2012, rise 2% in 2013 and increase 3.5% in 2014, the report said.
