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Realtor guru: 10% home-price jump possible

The Orange County Register June 26th

Here is another interesting and positive article about the real estate market in the US. We all hope that these predictions will fulfill. National Association of Realtors Chief Economist Lawrence Yun said he “would not be surprised” if U.S. home prices jumped 10% by June of next year. If true, that would be significant after three or four years of falling home prices.

“The market is healing,” Yun said recently at the National Association of Real Estate Editors conference in Denver.

Several factors triggered Yun’s enthusiasm: Strong demand among buyers, higher sales, lower number of homes for sale, and a level of foreclosures that – while high – has steadily decreased over the past two years.

Distressed sales – foreclosed and underwater homes – account for a fourth of the market this year, compared to a third last year, he said. By next year, they’re expected to account for 15%.

“This time next year, there could be a 10% price appreciation. I would not be surprised to see that,” Yun said.

But he quickly amended his comments after fellow speaker David Crowe, chief economist of the National Association of Home Builders, challenged Yun’s prediction on housing starts.

Yun believes that starts – the level of new homes breaking ground – would increase by 70% to 80% next year if construction loans become more available, especially for small builders.

If so, Yun told journalists, “then the prices will increase much faster,” he said. “The housing market in 2012 will show a recovery after a long bottoming.

You can read the full article here.

Wednesday, July 4th, 2012 at 5:14 am and is filed under buying property in usa, NEWS. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.