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Goldman Sachs predicts home sales will keep increasing for four years

Wall Street investment bank Goldman Sachs (GS) is telling clients that the housing recovery is real and happening.

The financial firm is predicting home sales will rise steadily for the next four years.

"Our forecast points to steady increases in home sales going forward. We expect total existing home sales to increase to 5.2 million in 2013 and 5.7 million in 2016," said analysts ()()

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"We project national house prices to rise 17% over the next four years and the unemployment rate to drop to 6.2% by the end of 2016," they add. "These improvements support more economic activity and housing transactions."

() In the near term, the speed at which distressed sales will decline is subject to the changing legal landscape. For example, the California Homeowner Bill of Rights, which took effect in January 2013, provides homeowners more protection against foreclosures, the analysts said. 

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