Housing market analysts from the National Association of Realtors are reporting some good news. Last month more prospective buyers signed agreements to buy new homes. The association cited statistics that report agreements are up by 5.9% from April, and 13.3 % from the same time last year. This surprised analysts, who expected a much smaller rise. This is good news for home owners and realtors, and is accompanied by a report from economist Lawernce Yun, who predicts further increases this year, as much as 10%. Yun also reported that the average price of homes is on the rise, and predicted further increases. He predicted existing homes will increase 3 % this year and 5.7% next year, with new homes rising 26% this year and 50% next year.
Other analysts also report that the housing industry is recovering, however they report more modest numbers. They say that while these numbers are good, and the housing industry is definitely improving, there are still obstacles to overcome. These include low inventory, underwater homeowners, and tight credit. Some of the analysts point out that the Association is biased, but all agree that this is good news for the housing industry.