National Association of Realtor’s outlook for 2011
Early this year, Chief Economist for the National Association of Realtors (NAR) Lawrence Yun was predicting that existing-home sales for this year will increase by 0.4 million when compared to last year’s sales of 4.8 million. In addition, Yun also expects that prices will increase an average of 1% this year. Although these figures may seem insignificant when compared to the extreme drop in values we’ve seen over the past several years, it will at least be a small step in the right direction and should help to create a snowball effect over next couple of years if he’s right.
According to Yun, these gains will be the result of continued economic improvements that he is also predicting. He believes we will see an increase of 1.5 million in our national job growth, which should bring our unemployment rate down to below 8% next year. In addition, Yun is also estimating a growth of 2.5% in our GDP over the next couple of years.
Whether or not these predictions come true will eventually boil down to whether or not we see businesses investing money back into growing their companies. Do to the low consumer confidence over the last several years; businesses have thus far been reluctant to invest money into growth activities like; hiring new workers or buying/leasing new assets and equipment. In addition, many smaller businesses are still unsure of how the new healthcare law and the new taxes created to fund it are going to affect their bottom line in the long run.
There is some hope however; although the Consumer Confidence Index is still showing consumer confidence is well below any number that would cause most companies to start investing, it has begun to ease up just a little when compared to where it was a few years ago. This combined with the fact that companies are now sitting on more liquid assets than ever before seen will eventually cause them to begin releasing there money back into the market.
Once we start to see business spending pick up, it will only be a matter of time before this trend starts to show results in the form of job growth and home sales. With home prices 30% below what they were in 2006, it shouldn’t take much to boost consumer confidence to a point where we will start to see the current oversupply of inventory begin to reduce as more and more buyers are able to enter the market.
Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my website: www.SellingHomesinReno.com
Joshua Talayka
NAR designated: Short Sale & Foreclosure Resource
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521
Source of Information: Realtor Magazine
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