The United States should see “a significant recovery in the housing market” during 2012, Coldwell Banker Real Estate International chief executive officer Jim Gillespie told a conference this week in Louisiana.

As the leader of one of America's biggest real estate agency group, Gillespie said that even though many property firms should still be concerned about the national market because the “perception” of the US housing market is still “awful,” he could see first-time buyers and investors playing an increasingly big role this year 

In 2005, nearly 8 million renters in America could afford to buy a home he told the meeting, and today that number has more or less doubled to 16 million, creating a lot of pent-up demand. Also, 40% to 45% of homes sold are usually sold to first-time buyers in a normal market, today the figure is well below 40%.

"That's a potential that is powerful," Gillespie said. "If you're not out there canvassing apartments, you're making a mistake."

Gillespie reckons that the number of home sales will rise this year as prices remain under pressure and at least an additional 2 million foreclosures take place. An improving job market, rising consumer confidence levels and a recovery in the national GDP will all contribute to a better homes sector

Gillespie told the conference to start focusing on the "pent-up demand" being created by thousands of frustrated young people unable to buy their own home. “These renters will be looking to move into start-up homes very quickly," he said. And, this is now “the greatest time since the Great Depression to buy a home. Affordability has never been higher."

Scource OPP