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and a home buyer who said.... I wonder.. Does Charo ever think it might not be a good time to buy?
The smell of excrement overpowers the air on Trulia Voices.
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Yun said the underlying fundamentals point to a pent-up demand. â€œHome sales are at about the same level as they were 10 years ago, yet the population has grown by 25 million people and we have over 10 million more jobs,â€ he said. â€œThe housing market has been underperforming by historical standards, partly because buyers were hampered by mortgage availability issues, but thatâ€™s improved and an upturn is more likely. On the other hand, itâ€™s unclear what role consumer confidence will play in the coming months.â€
Existing-home sales should increase from an annual pace of 5.05 million in the second quarter to 5.83 million in the fourth quarter. For all of this year, existing-home sales are expected to total 5.40 million, and then rise 6.3% to 5.74 million in 2009. â€œSales gains will be greatest in areas that underwent sharp price declines,â€ Yun said.
After unprecedented home price declines in the first half of the year, many markets can anticipate stabilizing price trends in the second half. The aggregate median existing-home price is likely to decline 8.4% in the first half of this year, and then begin to stabilize in the second half before rising 4.4% next year to $213,900.
â€œPolicymakers need to be attentive to the fact that many homeowners have seen a reduction in housing equity, or are in an â€˜underwaterâ€™ situation. More needs to be done on the policy front to alleviate hardships and bring fence-sitters back into the marketplace,â€ Yun said.
A great mix of conditions continues around the country. â€œWeâ€™re seeing healthy price gains in moderately priced areas like Erie, Pa., and Corpus Christi, Texas, and double-digit gains in others,â€ Yun said. â€œOur most recent data shows sales rising strongly from a year ago in some areas that experienced sharp price drops, including Detroit and Las Vegas.â€
New-home sales will probably fall 31.7% to 529,000 in 2008 before rising 12.5% to 595,000 next year. Housing starts, including multifamily units, are projected to drop 27.2% to 987,000 this year, and then slip 0.6% to 980,000 in 2009.
â€œRising construction costs will provide less room for price cuts on new homes,â€ Yun said. The median new-home price is forecast to decline 3.1% to $239,500 in 2008, and then rise 5.4% next year to $252,400.
Yun sees an improving economy. Growth in the U.S. gross domestic product (GDP) should be 1.7% in 2008 and 2.0% next year. The unemployment rate is estimated to average 5.3% this year and 5.6% in 2009.
Inflation, as measured by the Consumer Price Index, is expected to be 3.6% this year and 2.4% in 2009. Inflation-adjusted disposable personal income should grow 1.4% in 2008 and 2.5% next year.
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
I hope this article help you understand that my experience in this market selling homes to several buyers/sellers is parallel to what NAR's chief economist thinks. I am with media
and also my own experience, the marketing meetings, brokers tours and networking with other agents.
It's the idication that this is a very good market to buy. Find a home from several choices, negotiate your terms, negotiate the work (maintenance) required in the property, choose from several loan options available to you.
Please feel free to call me at 510-381-2105
or email me to discuss more at CharoBhatt@gmail.com