2012 Economic Forecast: Great Climate for Buying Houses

Recently I had the pleasure of attending the Greater Boston Real Estate Board's symposium highlighting the forecast of the 2012 housing market. The keynote speaker was Frank Nothaft, Ph.D., chief economist at Freddie Mac. In summary, we have slightly recovered from the longest and deepest recession to hit the U.S. since the 1930s. Overall, 2012 should be slightly better than this year, with the number of home sales predicted to increase about two to three percent. This is not a significant enough increase to be considered a "rally." Basically, the economy will continue to move on a slightly upward trend. The good news is: Home buyer affordability is terrific. Low interest rates, lower prices and large inventory combine to make a great climate for buying houses. Dr. Nothaft and other economists expect the housing price index to bottom out by early 2012.  The only thing holding back a boom in the housing market now is low consumer confidence. Buyers are still holding back and saving their money due to uncertainty about the future. Boston home prices have dropped 18 percent from their 2005 peak levels and are now about the same as they were in 2003. Please feel free to contact me if you want more information about the symposium and the housing market as it pertains to Weston.