REALTOR NEWS
signs from the labor market should set the stage for an above-par growth trend by mid 2011, according to the November 2010 Economic Outlook released by Fannie Mae’s Economics & Mortgage Market Analysis Group.
Despite challenges, including uncertainty on the domestic fiscal policy and international fronts, the report foresees gradual improvement in economic activity moving into 2011. In 2010, the economy showed a slight pickup in growth in the third quarter and consumer spending posted the best showing since the end of 2006.
“For all of 2010, total home sales are projected to decline by about 8 percent from 2009, marking the bottom of annual total home sales in this cycle,” says Fannie Mae Chief Economist Doug Duncan. “We expect home sales to increase by about 3 percent in 2011. However, the pace of recovery will largely be determined by labor conditions. If hiring improves at a faster pace than expected, home sales will likely see a stronger gain in 2011 and vice versa.”
© 2010 Florida Realtors®
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