May. 29, 2009 - Home Sales Increasing in Many Areas

According to the National Association of Realtors® (NAR), historically high housing affordability and low mortgage interest rates, combined with buyer opportunities in the distressed sales market, have increased home sales in many areas of the country.

“There has never been a better time to buy,” said NAR Chief Economist Lawrence Yun, who presented the report at a recent Economic Issues and Residential Real Estate Business Trends forum. Yun commented on a convergence of favorable buying conditions while emphasizing how important it is for home buyers to stay within their budgets.

“Housing affordability is at an all-time high, mortgage rates are historically low, and interest rates are the lowest they’ve been since the days of Eisenhower,” said Yun. “Now that buyers will be able to use the $8,000 tax credit as a down payment, we should see additional buyers enter the market.” Yun said he doesn’t anticipate an immediate pickup in the coming months, but believes early summer will be a critical indicator of how home buyers are responding to the tax credit.

“The stimulus and falling inventory levels will help stabilize prices,” said Yun. “My projection is home sales will be 10 to 20 percent higher the second half of this year than last year and we will come out of this recession in 2010.”