More Growth And Expansion Next Year, Experts Say

November 14, 2009

The real estate market will experience growth and expansion next year, according to projections from most major real estate organizations. The recession will be behind us. The National Association of Realtors, National Association of Home Builders, Mortgage Bankers Association, Fannie Mae and Freddie Mac are all predicting solid growth in 2010, according to a study conducted by Real Estate Economy Watch. The consensus for predicted activity next year is in sharp contrast with the market this year.

This year will show about a 36 percent drop in residential construction (housing construction starts), and a 17 percent drop in new home sales. The organizations are predicting a modest increase in existing home sales next year. This year, many sales resulted from the availability of foreclosed and other distressed properties, along with low mortgage interest rates and a substantial tax credit for first-time buyers.

In fact, foreclosure sales accounted by about 50 percent of all home sales during the first quarter of this year – 33 percent during the second and third quarters, according to a report from NAR. The organizations generally agreed on their projections for next year’s home sales, but differed on home prices. The group consensus pointed to existing home sales increasing by about 9.6 percent next year to about 5.4 million units.

Posted in Real Estate