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Almost lost among the in-line 1% December rise in pending homes sales, as compiled by the National Association of Realtors, was an observation by NAR Chief Economist Lawence Yun.Yun said he expects existing home sales to rise to 5.6 million in 2010, up 8.5% from 5.16 million in 2009, aided by the the extended home buyer tax credit. Yun also sees 2.4 million households taking advantage of the home buyer credit in 2010.
The original tax credit program expired November 30, but Congress has since renewed and expanded the credit to $8,000 for first-time buyers and $6,500 for existing home owners for purchases before April 30, 2010.
Housing Analysis: If economist Yun can find all of those existing home sales in 2010, all the better for the U.S. economy and for job growth.
With all due respect, an 8.5% increase in existing home sales may be a tad optimistic, but it's not completely unattainable. Much depends on the state of mortgage lending: U.S. banks have toughened mortgage requirements -- they remain too rigorous -- and those requirements will have to be loosened to aid existing home sales in the immediate quarters ahead.
Housing Analysis: If economist Yun can find all of those existing home sales in 2010, all the better for the U.S. economy and for job growth.
With all due respect, an 8.5% increase in existing home sales may be a tad optimistic, but it's not completely unattainable. Much depends on the state of mortgage lending: U.S. banks have toughened mortgage requirements -- they remain too rigorous -- and those requirements will have to be loosened to aid existing home sales in the immediate quarters ahead.
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Reader Comments (Page 1 of 1)
2-02-2010 @ 6:32PM
william lindblad said...
With all due respect, dream on.
I repeat. This market will remain static - at best.
The only portion that will see significant sales will be in the under 100K areas and that virtually eliminates all new construction. The very real bug-a-boo is that the major portion of both new and existing homes are in a range above the stated figure. At some time in the very near future there will be significant pressure on the higher priced area to make drastic reductions which in turn could reflect on, and effect the lower ranges in price. If such a condition prevails, than negative equity will appear again - in the only area of life. In the words of one of the wizards that caused the whole economic problem - it's a conundrum.
And - golly,gee,gosh - we still have an untold amount of notes that are either in, or at, some state of default!