Orange County CA housing, as well as a forecast for the nation’s housing and economic outlook was presented recently by the National Association of Realtors (NAR) during their 2012 Realtors Conference and Expo.
NAR chief economist Lawrence Yun says he expects the market share of distressed sales to fall from about 25 percent in 2012 to 8 percent in 2014.
Mark Vitner, managing director and senior economist at Wells Fargo, one of the speakers at the NAR conference, compared distressed homes to an after-Christmas sale. Vitner stated, “most of the best stuff has been picked over, but make no mistake they’ll be with us for a while.”
Orange County CA Housing Recovery Expected to Continue
The Orange County CA housing recovery is expected to continue so long as credit does not further tighten and a fiscal cliff is avoided.
The rise in home prices should also stay. Yun predicted a 6 percent rise in the median existing-home price in 2012, with another 5.1 percent increase next year and comparable gains in 2014.
Existing-home sales are projected to move higher year-after-year: a 9 percent increase this year to 4.64 million, 5.05 million in 2013, and 5.3 million in 2014.
Mortgage interest rates are expected to eventually increase to an average of 4 percent next year, and inflationary pressure should cause rates to go up to 4.6 percent in 2014, according to the NAR forecast.
Yun added, “While we’re hopeful that something can be accomplished, the alternative would be a likely recession, so automatic spending cuts and tax increases need to be addressed quickly.”
The state of the housing market continues to improve though recovery remains “fragile,” according to the October Housing Scorecard released by the Obama administration. Signs of improvement include rising home prices, rising home sales, and ongoing efforts through the Making Home Affordable Program.
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