2008 Looks Great for Real Estate Market

The National Association of Realtors is forecasting a stabilization in the so-called erratic housing market. Job growth and the replacement of subprime lenders to borrowers with weak credit with government-backed loans are cited as the main reasons for the improved outlook. The trade group also said its index that forecasts near-term home sales inched upward in October. The trade group’s seasonally adjusted index of pending sales for existing homes rose 0.6 percent to 87.2 from an upwardly revised September index of 86.7. Existing home sales are likely to total 5.7 million in 2008, slightly up from the 5.67 million homes sold in 2007.

Locally, we can expect a healthy outlook on ‘08 as well. Housing values have increased three percent from this time last year with a median price for a single-family home valued at $180,000. “With local job and population increases, the Austin Board of REALTORS predicts substantial growth in Central Texas for the next 20 to 30 years”, states ABOR Chariman Charles Porter.Â

For more information visit the National Board of Realtors website at www.realtor.org