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Economists revise forecasts for real estate recovery

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Editor's note: This article is republished with permission of Builder magazine. View the original article: "Economists trim 2011 housing forecasts, call for recovery in 2012." By BOYCE THOMPSON In what has become a mid-year ritual, housing economists have quietly trimmed their annual forecasts after a lackluster start to the year, pushing back a housing recovery until 2012. As the year began, the consensus opinion among housing economists was that a housing recovery might begin late in 2011, as the economy produced more jobs, excess housing inventory was burned off, and consumer confidence improved. Weak economic growth during the first part of the year, coupled with a double-dip in home prices, have led to a reassessment of that view. The National Association of Home Builders recently revised its 2011 forecast down to a meager 2 percent increase in starts, a view that is shared by the forecasting firm IHS Global Insight. Wells Fargo is calling for only ...