Yun: Housing Can Save the Economy

The depth of the current recession depends on the housing market’s recovery.

"And housing’s recovery will depend on stabilizing prices and inventory absorptions,” NAR Chief Economist Lawrence Yun told a packed theater here Friday.
If housing prices stabilize, the current recession could be mild and recovery could come in the second half of 2009. Without stabilization, the recession could drag on until 2010, he said.”Economic conditions are worst than in the last two recessions, so the current downturn could be deep and prolonged, said Yun.
The good news, said Yun, is that even if the recession is prolonged ” housing doesn’t necessarily follow the economy.”

Housing demand is driven more by affordability and mortgage rates than economic performance, he said. “Even with the 6 percent current unemployment or the 9 or 10 percent that could come with a severe recession, most people will have jobs and will buy homes if the pricing incentives are there,” said Yun.
More positive news is that home sales—although not prices—showed their first uptick in three years during the last quarter. “We are beginning to come back, but recovery won’t happen until inventories are reduced from their current 10-month levels back to a more normal six months.

Fannie and Freddie also need to continue to fulfill their public mission of lending in difficult markets to keep mortgage rates low, Yun said.

But even more critical to a housing recovery are stabilizing home prices. Only then will new buyers get back into the marketplace and underwater buyers be able to consider moving up, he added.

A federal housing stimulus package for home buyers and the promised federal actions of buying troubled loans are also need to support home markets, he said. He urged members to make their congressional representatives aware of the need to help housing.

—Mariwyn Evans

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Presented by Klemens Raab | Community: Financial News, Mortgage News, News, Uncategorized

5946 Haverhill Ln

5946 Haverhill Ln, Frisco, TX 75034

Property Features

Beautiful Highland Home with 5 bedrooms and Game Room, Media Room, and Study! PLUS, the community is the ONLY neighborhood in Frisco with DIRECT TOLLWAY ACCESS!

Price - $462,900
Sq. Ft. - 4,635
Stories - 2
Bedrooms - 5
Bathrooms - 4.1
Living Areas - 5 (including Game Room, Study, and Media Room
Dining Areas - 2
Garages - 3 (rear entry)
Master - Downstairs

Schools:

District: Frisco ISD
Elementary: CARROLL
Middle: GRIFFIN
High: WAKELAND

Additional Photos

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Six Rules for Selling Fast in a Slow Market

Anyone looking for advice on how to close a deal in a tough market might get some inspiration from William Bronchick and Ray Cooper, authors of How To Sell A House Fast In A Slow Real Estate Market(2008: John A. Wiley & Sons).

Here are some of their most useful ideas:

Position the house in the right price range. Buyers search by price range. Positioning a property in the middle of the range increases the likelihood people will see it.

Have info available. Deals fall apart when the buyer has unanswered questions. Work with the seller to have key information available, including cost of utilities and taxes, neighborhood liens and covenants, and an evaluation of the schools.

Put out a good flier. People are much more likely to read the flier than they are to call the number on the “For Sale” sign.

Market to the neighbors. Market to people who have just listed their own homes in the same areas. Chances are they like the neighborhood and could be persuaded to stay in the area by the right property.

Talk to the seller about offering creative financing. For many people these days finding money is the biggest stumbling block.

Explain the first-offer rule to clients. In this market holding out for a better offer is a big mistake.

Source: Forbes, William Bronchick and Ray Cooper (10/21/2008)

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Presented by Klemens Raab | Community: Uncategorized