The National Association of Realtors (NAR) expects a decline in home sales after the federal tax credit, but overall, 2010 should be a better year than 2009, according to their latest forecast report.

Previously owned home sales are forecast to rise 4.3% this year, a bit lower than the previously reported expectation of 6.5%, and 2011's forecast is even stronger, with sales expected to rise 5.1%, up from a previous forecast of 3.7%.

Median resale home prices are forecast to increase 2.5% for 2010 and 3.7% in 2011, compared to a previous forecast that showed a 2.7% increase in 2010 and a 4.3% increase in 2011.

NAR's Chief Economist Lawrence Yun acknowledges that the tax credit helped to stabilize the market, but also adds, "In the months immediately following the expiration of the tax credit, we expect measurably lower sales. Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing."

The Pending Home Sales Index increased again this March by 5.3%.

Read more at the NAR website and from Inman News.

Posted in Education And Training, Buyer Resources, Seller Resources

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