The National Association of Business Economics has just released its October survey. The economists forecast rising home prices and construction growth despite the fact that the overall economic growth estimate for this year was reduced from 2.4 to 1.9 percent. Given the recent drop in unemployment, which occurred subsequent to the survey, the results might be conservative.
Most of the economists who responded predicted housing starts would increase 23 percent this year and rise by 13 percent to 850,000 in 2013. However, a few of the responders predicted over a million starts in 2013. There was little consensus about the forecast of home prices next year. Predictions ranged from 0.6 percent to more than 5.6 percent.