According to an economic outlook from Fannie Mae chief economist Doug Duncan, there are a number of positive signs emerging that indicate the housing market recovery will begin to accelerate later this year. Pending home sales rose 8.2 percent in May, which suggests a rebound in existing-home sales in the coming months. Also, the percentage of distressed sales continues to decline. A larger share of distressed property sales distorts prices downward and as that percentage falls, so does pressure on prices. Duncan says supply-demand conditions in the new home market have become more balanced and new-home sales will remain relatively flat for 2011. Home prices and sales will improve in the third quarter of this year and see more meaningful gains in 2012, according to Fannie Mae’s forecast. More here.
