Things Are Looking Up: 2010 Economic Forecast

A large crowd of REALTORS®, many with coffee cups in hand, snapping photos with iPhones and Blackberries, packed a ball room this morning to hear NAR Chief Economist Lawrence Yun discuss housing market trends and the economic outlook.

Yun kicked off his presentation by telling the capacity crowd that things are looking up with the recent extension and expansion of the home buyer tax credit and home prices beginning to stabilize. While the U.S. economy still faces some significant challenges, including high unemployment, Yun says there are a number of reasons for REALTORS® to feel optimistic about 2010: “The momentum is building. . .”

According to Yun, the tax credit has already delivered a significant boost to the economy, bringing 350,000 to 400,000 buyers to the housing market so far. The extended and expanded home buyer tax credit will help to release pent-up demand, bringing more buyers–including move-up buyers–into the market and increasing market velocity. Yun estimates that in 2010, thanks to the credit and home price stabilization, home sales should increase by 15%–an estimate that he was careful to explain is extremely conservative. Home values, which Yun stressed are key to durable economic recovery, will begin to become positive in 2010.

To check out NAR’s Economic Forecast or the slide show presentation, visit NAR Research’s home page.

Comments
  1. I’ve been reading about the impending economic recovery since summer. The New York Times had neat feature on their site that showed the economic indicators and the state of the economy since 1930 I think it was and there model was showing us heading into recovery.

  2. No uptick in the employment rate, and we’ll see no sustained real estate surge.

  3. Commercial real estate can be a great long term investment. When looking for a property that you can rent out as apartments, look into properties that have at least ten or more units, in order to maximize your profits. The more units that a property has, the cheaper each individual unit is.

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