National Association of Realtor's Positive Forecast for 2011
 

 

The National Association of Realtors (NAR) is optimistic about home sales in 2011. Pending homes sales in November increased 3.5 percent, which indicates a gradual recovery for this upcoming year.

NAR chief economist Laurence Yun said, "All the indicator trends are pointing to a gradual housing recovery. Home price prospects will vary depending largely upon local job market conditions. The national median home price, however, is expected to remain stable even with a continuing flow of distressed properties coming onto the market, as long as there is a steady demand of financially healthy home buyers."

Low mortgage rates, high housing affordability, and a little economic growth are pushing the housing market toward a slight recovery. The high number of foreclosures is still keeping the market from recovering more quickly, however.

Other NAR projections for 2011 include:

  • New home sales are estimated to rise 24 percent;
  • Existing-home sales are projected to rise about 8 percent;
  • Housing starts are expected to rise 21 percent;
  • The unemployment rate is expected to drop in 2011.

We should expect some peaks and valleys, but it's important not to panic. In general, the trend is expected to be an increase over the next few years.