National Association of Realtors Real Estate Forecast

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National Association of Realtors Real Estate Forecast

Posted by Cat Nguyen on Nov 12, 2012 | Comments Off

What’s the National Association of Realtors (NAR) thoughts on our future real estate market?

NAR offered some projections to the Realtors at a Conference Expo in 2012. Chief Economist Lawrence Yun for NAR says that he expects for the share of distress sales to decline about 25% in 2012 to about 8% in 2012.

As long as the credit guidelines doesn’t tighten up they expect the market to continue to recover. If the guidelines continue to tighten up that will have many buyers not be able to qualify to buy a home. The increase of home prices should also continue. Mr. Yun has predicted for the market to increase 6 percent in the median existing-home prices for 2012. He also thinks there will be a 5.1 increase next year and comparable gains in the future.

He anticipate for existing-home sales to move up each year to about a 9 percent increase and for this year it would be 4.64 million, 5.05 million for 2013 and 5.3 million for 2014.

He also thinks that the Gross Domestic Product (GDP) will increase in coming years from 2.1 this year to 2.5 percent in 2013. The unemployment rates should also drop to the 7.6% range in 2013.

Mortgage rates is expected to increase to an average of 4 percent next year. Inflationary pressure could case the mortgage rates to increase to 4.6 percent in 2014 NAR had announced. So if you are interested in buying you should take advantage of the low interest rates now.

Please contact us at 214-469-9990 if you are interested in buying and taking advantage of the low interest rate today. Although home prices are increasing it still makes more sense to many to buy instead of renting. We look forward in helping you with any of your real estate needs here at JC & Associates.