The Real Deal Miami

Housing report forecast shows optimism among economists

November 18, 2009 08:11AM

Homebuilders began construction on new homes in October at the fastest pace in 11 months, according to a median forecast of 77 economists, as reported in a Bloomberg news survey. The housing starts jumped to an annual rate of 600,000, the forecast said, marking a 1.7 percent increase. Reduced home prices, coupled with federal tax incentives and reduced borrowing costs, were cited as key reasons for the expected industry turnaround. While some experts say that a tenuous job market could derail progress, the industry consensus is that the Commerce Department’s housing report, due later this morning, will yield good news. For his part, Toll Brothers CEO Robert Toll said he’s optimistic about the industry’s progress. “The new home market is improving,” Toll said. “We sense that it is, though slowly and through choppy waters.”