The housing recovery is at a “turning point,” say economists at Wells Fargo Securities, but it needs more jobs and income growth in order to pick up steam.
High unemployment remains a drag on the housing recovery, severely limiting the upside for housing demand nationwide, according to the latest WFS Housing Chartbook. For the housing recovery to gain more traction, “overall employment conditions need to improve further.”
Wells Fargo economists have lowered their projections for new home sales, estimating 440,000 new home sales this year, which would be up 19 percent from last year. In July, Wells Fargo economists had predicted a 24 percent increase in new home sales.
Source: “Wells Fargo Economists Reduce New Home Sales Forecast,” National Mortgage News (Oct. 3, 2013)