Positive Predictions for Residential Real Estate in 2011

The 24th annual Economic Outlook Symposium was held in Chicago on December 3 to discuss the economic outlook for 2011, and the predictions were mostly positive.
The results, released this week by the Federal Reserve Bank of Chicago, show that the nation’s housing market is expected to improve next year after a five-year struggle.
Fortune cookies with the fortune, The Fed especially predicts positive news in home investments. While the consensus outlook expects residential investments to decrease at a rate of negative 4.7 percent this year, it sees an increase in 2011 at a rate of 9.6 percent.
The Fed also forecasts that housing starts will increase to 690,000 in 2011. The total number of housing starts in 2009 was 550,000.
Other forecasts for 2011:
*The unemployment rate is expected to decrease from 2010’s 9.6 percent to 9.2 percent by the end of 2011.
*The short-term interest rate is expected to increase by 35 basis points, and the long-term rate is expected to go up 46 basis points.
*Consumer and business spending are expected to increase.
*Car and light truck sales should increase, oil prices are expected to go up and the trade-weighted U.S. dollar is expected to remain unchanged.
“According to the median forecast of symposium participants,” said William A. Strauss, Senior Economist and Economic Advisor, “the nation’s economic growth is expected to increase at a solid pace in 2011.”
We can only hope.