While many economists and analysts think the housing recovery will plod along and finally achieve “normalcy”, some saying not until 2020, other experts predict a housing boom will hit within two to three years. As CNNMoney tells MHProNews, Barclays Capital analyst Stephen Kim states, “In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing starts.” He expects home prices to rise five to seven percent a year. Some think housing construction will increase by 20 percent the next two years, resulting in 1.5 million new homes a year by 2016. Rick Palacios with John Burns Real Estate Consulting, says, “If you look across the U.S. economy right now, there are only a handful of industries looking at 20-30% growth over the next 4-5 years, and housing is one of those.” The recovery may be strong enough to have a ripple effect which in turn would create more demand for housing. Quoted in the Financial Times, former Deputy Treasury Secretary Roger Altman, now chairman of Evercore Partners, noting the housing industry will add four million jobs to the market within four years, says “It will be powerful enough to lift the entire U.S. economy.”
