Friday, January 15, 2010

Pending Home Sales Higher Than a Year Ago

Lawrence Yun, Chief Economist and Senior Vice President of Research at the NATIONAL ASSOCIATION OF REALTORS, discusses where the market is headed and interest rates in the near term. Click to watch the video above.

Lawrence Yun, NAR chief economist, said a drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”

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Richard's Notes: I do agree with Dr. Yun that homes sales will increase in Spring of '10 as home-buyers will try to secure a low interest rate and the tax credit.  What remains to be seen is what will happen to the real estate market past June 30(deadline for $8000 or $6500 tax credit).

I also agree with Dr. Yun that the foreclosure market will be elevated this year.  The question remains, aside from politics and incentives for banks to modify home loans, how many of these home-owners will finally be forced out of their home.


Richard M. Johnston
RE/MAX Grand Central
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