Home Buyer Alert, home prices are expected to grow modestly this year and sales will keep rising as the housing market continues to recover from the worst downturn since the Great Depression, the National Association of Realtors said in their latest report. Home resale's are projected to total 5.7 million this year, up from an estimated 5 million last year. Prices will climb about 4% after a projected decline of 13% last year, according to Lawrence Yun, chief economist for the trade association. "Going into 2010, I anticipate that prices will also begin stabilizing or begin to modestly improve," said Yun. "I don't think the fear factor will be at play in 2010."
The housing market's rebound has been aided by an aggressive federal intervention to lower mortgage rates and bring more buyers into the market. Home resale's rose in the previous quarter to the highest level in more than two years, something Yun said shows buyers are eager to get back into the market. A federal tax credit of up to $8,000 for first-time homebuyers helped fuel increased sales last year. The incentive was set to expire at the end of November, but the NAR and other housing groups successfully lobbied to get the credit extended. Now buyers can claim the credit if they sign a contract by April 30 and close the deal by the end of June. Lawmakers also expanded the program to include a $6,500 credit for existing homeowners who have lived in their current residence for at least five years.
Source: NAR
All the indicators are there much like watching a stock. When the indicators are there, you buy. So...home buyers should be flooding the market to take advantage of the low rates that may be on the rise come summer.
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Traci L. Marra
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