The National Association of Business Economists' Quarterly Outlook, indicates economists have a greater optimism about job growth and housing markets.
The NABE's surveyed economists expected other economic indicators would remain weak adding to the U.S. markets slow recovery.
The NABE's market outlook expectations on employment projected an increase of 188,000 jobs per month average. At this rate, the unemployment rate would move to 8 percent by the end of the year and end 2013 at 7.5 percent. The unemployment rate has steadily been increasing moving from 9 percent in the first quarter of 2011 to its current rate of 8.1 percent.
The improvement in the labor markets is expected to add to home buying, as consumers gain greater financial confidence and income increases.
When surveyed on housing markets, economists expect housing starts to increase, rising to 18 percent this year and increasing again to 850,000 in 2013.
This is on pace with Freddie Mac quarterly data and which shows total housing starts monthly averages at 690,000 per month in Q1 2012 and steadily increasing throughout 2011 from 580,000 to 670,000 ending 2011.
NABE's survey reports residential investment is expected to show an increase of 8.8 percent this year, better than 6.6 percent predicted in February. 2013 expectations moved to 10.4 percent up from 10 percent.
Other economic indicators influencing the economy and housing market include GDP, consumer spending, and corporate profits.
The NABE's survey respondents expect GDP to be 2.4 percent this year – below the Federal Reserve's 2.5 percent forecast. Consumer spending is expected to increase 2.2 percent this year and 2.5 percent in 2013 below the average rate of 2.8 percent.
Corporate profits are expected to rise 5 percent this year and 6.3 percent next year according to the NABE's survey. This is a reduced reading from the NABE economists 6.3 percent growth for this year and 7 percent in 2013. The annual average for corporate profits over the past 20 years is 10.2 percent.
As job growth improves, the housing market is expected to see further increases in housing starts and housing sales. This is evident in the current trends and is expected to increase at this pace.
