According to the National Association of Realtors, up to 2.4 million Americans will end up buying a home in 2009, with 47 percent of home sales over the past year attributed to first-time buyers. That figure stood at 36 percent in 2006, when housing prices were closer to their previous peaks.
In 2010, the organization expects 549,000 new homes to be sold, up from 397,000 in 2009. Existing home sales are predicted to be 5.69 million in 2010, up from an expected 5.01 million for 2009.
The real estate industry is also continuing to watch for signs that the nationwide surplus of housing units on the market is starting to go down, which would allow prices to start going back up. This would also depend heavily on whether the market can be cleared more of foreclosed properties, which have helped renew buying activity while also maintaining downward pressure on prices.
“Given the success of the first-time buyer tax credit to date, and the need for qualified buyers to continue to absorb inventory that will include additional foreclosures over the coming year, we are hopeful about the impact of the expanded tax credit because it will stabilize home prices,” said NAR chief economist Lawrence Yun.
Looking ahead, more consumers are expected to enter the housing market in 2010 or at least explore their options. However, if they want to qualify for mortgage loans, they need to be sure their credit score will be high enough for the tighter lending standards that have become common in the current economic climate.
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