Will home sales improve in ‘08?
April 8th, 2008, 10:30 am · Post a Comment · posted by mistywilliams
Local real estate agents have seemed a bit more upbeat these days. It is springtime, after all, when potential buyers hit the open house circuits again after the holiday crazy is over.
More people have been showing interest but will that translate to actual sales?
The National Association of Realtors thinks so. The trade group is projecting that existing home sales will begin to pick up in the second half of 2008, as recently established higher mortgage loan limits give more people access to financing.
“Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure,” said Lawrence Yun, the association’s chief economist.
Existing home sales are expected to rise from an annual pace of 4.9 million in the first three months of this year to 5.9 million in the final months of 2008, according to a recent report by the group.
The shaky economy, experts say, is the biggest wild card that could stymie a housing market rebound. When wallets are tight and job security is no longer a guarantee, taking on a new mortgage is not on the forefront of most people’s minds.
Still, recent activities in the Valley — busier open houses, a growing number of pending deals, more phone calls to agents — seem to indicate at least some nervous buyers are stepping off the sidelines. Out-of-area investors are also taking an interest in the Valley, buying up large tracts of land. Commercial real estate experts say that could be a sign that investors believe the bottom is near or already at hand.
If buyer activity began to pick up earlier this year, that should translate into more sales in the next few months. And you can bet local housing analysts and agents are keeping a close eye on those numbers, hoping to glimpse a sign that recovery may be around the corner.
