country, it's nice to see the national picture looking up! After such a long haul of gloomy predictions for the future, I think some people were beginning to fear their next home would be much less comfortable, attractive and roomy than they had hoped . . . "First, the good news: home sales have stabilized over the last seven months and should increase slightly in the second half of 2008, NAR Chief Economist Lawrence Yun told a crowd of REALTORS® at NAR’s Midyear Legislative Meetings & Trade Expo Thursday. The other good news is that the subprime lending crisis is becoming a thing of the past. 'I believe 2008 will be the year when we have to clean up and recover from the subprime mess,' said Yun.
A brighter credit picture is a major contributor to this improvement, Yun said.
Prices also are expected to begin a turnaround later this year, although recovery will vary by market. Middle-America cities that performed evenly over the past few years – like Cincinnati, Milwaukee and the Kansas City, Mo., area – are likely to experience home price gains in the 20 to 30 percent range over the next five years, while markets like Miami, Las Vegas and Phoenix could see prices go up as much as 50 percent during that time period, Yun said.
The home buyer tax credit currently being considered by Congress would also encourage uncertain buyers to act. Stabilized prices will not only encourage sales but could help reduce defaults, he added. "
For the full Realtor magazine article: http://www.realtor.org/RMODaily.nsf/pages/News2008051603?OpenDocument
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