How is it possible that existing home sales are projected to rise in 2011? According to economic expert Dr. Lawrence Yun, home sales are tied into many factors but population numbers figure prominently. The U.S. economy shows signs of improvement.There is also good news waiting on the horizon. The U.S. economy shows signs of improvement. New jobs have been created. In December, 2010, 1.1 million new jobs were created compared to 12-09. And in 2011, job gains are expected to accelerate to almost 2 million net new jobs.
Another important factor is that an improving economy bumps up home sale. A survey of home sellers indicates that recent sellers have been in their home for a shorter time than older homeowners usually live in their current residence for 10 year. Younger homeowners usually live in their home for a shorter time than older homeowners. While older homeowners are more likely to buy a second home for vacation or investment.
After putting all these factors to paper, economists project that existing home sales will rise 8 percent to 5.2 million homes sold and possibly to 5.5 million in 2012.
