4 Key Areas for Real Estate in the Spring
BOSTON (MainStreet) -- The housing market's key spring selling season gets under way this month, and the National Association of Realtors expects the number of homes changing hands to actually rise this time around after years of flat or declining sales.
"This is the first year where we may see meaningful recovery signs in housing," says the NAR's chief economist, Lawrence Yun, who recently boosted his forecast for second-quarter existing-home sales to a seasonally adjusted 4.5 million units. That's up 7.7% from a year earlier.
|There's good news for the housing market in spring, especially in places such as long-suffering Miami, where demand may well start bumping up.|
Yun also expects median U.S. sales prices to rise 1% from last year's levels to hit $171,000 this spring.
"A lot of factors are moving in the right direction," he says. "Mortgage rates are at historic lows, rising rents are squeezing tenants, the stock market has robustly bounced back and the job market is beginning to come around."The economist adds that sub-4% mortgage rates, the lowest backlog of unsold homes in seven years and prices that have dropped back to 2003 levels should also buoy the market. "I think we can get price stability or a modest price pickup," Yun says of the spring. Of course, plenty of headwinds remain for housing.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV