The chief economist for the National Association of Realtors said Thursday he expects "modest" price increases for homes by the middle of next year.
Lawrence Yun, addressed members of the Wisconsin Realtors Association, said federal tax credits that last through mid-2010 will lure potential buyers who have been holding off to enter the market. That, and a recovering economy, should help stabilize prices, he said.
Yun, in an interview before his remarks to Realtors at the Country Springs Hotel and Conference Center, said he believes the spring buying season will be very strong nationwide as first-time buyers take advantage of a tax credit of up to $8,000 and previous homeowners are drawn into the market by a tax credit of as much as $6,500. The tax credits are for home sales that close by June 30 of next year.
"I think at that point we really will have stable prices, and in fact, some modest price increases," Yun said.
This in the face of an ~19% BLS estimate of un-, under-, or 'out of the market' employment rate.