“A huge volume of cash sales, supported by the recovery in the stock market, shows that smart money is chasing real estate,” according to Lawrence Yun, Chief Economist with the National Association of Realtors (NAR).
A recent report from economists at NAR indicates that both REO Sales and Short Sales are expected to continue on an “upward, albeit uneven, track through this year and next…” Yun provides a positive forecast for distressed property sales for the remainder of this year and next, projecting 5.3 million existing home sales this year, up from 4.9 million in 2010. He expects 2012 sales of about 5.6 million.
Yun indicates the current makeup of buyers shows “sizable pent-up demand” from those characterized as traditional buyers who need mortgage financing in order to purchase a home. Yun projected if mortgage standards/credit requirements were “returned to normal, safe standards,” home sales will expand by 15 percent to 20 percent.
Review the forecast and study results, and then let us know if you agree with these assessments and forecasts in your marketplace.