Market
Watch
As I mentioned last month I will recap
Lawrence Yun’s economic/real estate forecast for 2013. Lawrence Yun PhD is the
chief economist for the National Association of Realtors. He graduated from
Purdue University and received his doctorate in economics from The University of
Maryland. He serves on Harvard University’s Industrial Economic Council and has
been recognized as one of the top ten economic forecasters in the country.
Dr. Yun is more optimistic about real
estate than the economy as a whole. He anticipates sales of existing homes to
reach 5 million units next year with the median price up 5% and median prices up
almost 15% over a three year period. He also anticipates new construction to
increase next year by 25%. Although a 25% increase is a huge increase it is
important to note that new construction has been very low for three years and
new construction inventory is at a 50 year low. Interest rates should stay low
for at least two more years. GDP will rise about 2% next year.
Both Dr. Yun and Mark Vitner, Managing
Director and Sr. economist with Wells Fargo spoke at the same economic
presentation. Both economists assume that we will not have a recession next
year. Both also point out that to avoid a recession we must reduce our deficit
and to reduce our deficit we must implement significant entitlement reform.
Dr. Yun, The National Association of
Homebuilders and Wells Fargo all point out that homes are more affordable today
than they have been in decades. Seventy four percent of all homes sold in the
3rd quarter were affordable to families making the median household income of
$65,000.
If you haven’t signed up for My F.C.
Tucker Emge on our website please do or call me for instructions. New
enhancements to our map search at FCTuckeremge.com have made shopping for a home
easier than ever. You can reach me on my cell phone at 812-499-9234.
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