The Chief Economist for the National Association of Realtors, Lawrence Yun, gave his opinion regarding those questions at a meeting for Realtors that was held in San Diego this past week.
Mr. Yun believes that the worst may well be over. He envisions that the Gross Domestic Product will grow by approximately 2.5 % during 2011 and 2012.
He says that he thinks that 1.5 million jobs be created over each of the coming two years. He sees a drop in unemployment to 8 % during the coming year, and to 6 % in 2015.
As for mortgage interest rates, he believes that they will go from their present historically low level to approximately 5.7 % during the next year. Two years from now, they may hit 6.2 %.
Home prices should remain fairly flat nationally for 2011 and 2012, although here in San Diego County, prices are edging upwards.
This coming year, he thinks that the construction of new homes will increase by nearly 50 % to approximately 900,000 units. This is less than before when the number hit around 1.5 million yearly.
The move downward in sales following the termination of the tax credits on May 30 was expected, and he had foreseen a slowdown of sales by up to 40 % during the summer months of this year from the summer of last year. Stabilization of the market will be seen when fall sales are just 10 to 20 % from the fall of 2009.
Search San Diego Foreclosures
