The first quarter of 2012 was the
best first quarter for real estate in five years, and pending contracts
suggest that the second quarter of 2012 will be the best second quarter
in five years, NAR Chief Economist Lawrence Yun said this morning at the
Residential Economic Update during the NAR Midyear Legislative Meetings
& Trade Expo.
Moreover, he said the second half of this year could be even better
than the first, in part because of continued increases in rental costs
and record affordability of homes.
"Renters are getting squeezed, and they don't want to rent anymore,"
Yun explained. "This could be the year we see the release of pent-up
demand."
Home prices have been skipping along the bottom for about a year now,
Yun said, a trend that has drawn investors into the market. These
investors have helped housing through a couple of difficult years and
partly mitigated the dysfunctional mortgage market.
"Right now is the time to buy low," he said. "Investors are coming in
to take advantage. Second homes started to recover nicely last year
because of investors."
However, home values are poised for a rebound as more traditional
buyers move back into the market, Yun said. In fact, this has already
started to happen in areas such as Phoenix and Miami, which have seen
year-over-year (March 2011 to March 2012) double-digit percentage
increases in home prices.
Daily Real Estate News