“Home sales will increase 15 percent to about 5.7 million units and REALTOR® income will be up 20 percent in 2010, NAR Chief Economist Lawrence Yun told a packed room of REALTORS® today in a residential economic update at the 2009 NAR Conference & Expo”
Yun says that the First time home buyer tax credit helped bring a lot of new buyers into the market, which helped lower available inventory. A type of domino effect then occurred, when the sellers of those homes bought move-up homes. The increase in sales also helped to stabilize prices, and boosted confidence in the overall market.
This stabilization is set to continue into 2010 with the help of the extension and expansion of the tax credit. As more homes sell, the balance of supply and demand will begin to be restored. More sales will also help appraisers because there will be more comps to use in finding a value for a house, “Once appraisals improve, foreclosures will ease, blunting their drag on the market and making it less likely that Fannie Mae, Freddie Mac, and even FHA will need help from the taxpayer.”