On Friday November 5th, 2010 the National Association of Realtors (NAR) shared their 2011 housing predictions and forecast at the New Orleans Annual Convention. NAR is forecasting that across the US home values will increase by a very small percentage in 2011 – just 0.7%.
NAR”s Chief Economist, Lawrence Yun, believes that in about 5 years when the home values have recovered and rates have gone up, people will look back and say “I should have bought a home back then.” Yun also predicted we will still be handing foreclosures and short sales for the next two years.
At the conference, realtors discussed alternatives to home ownership like renting. Thomas Hoenig, president of the Kansas City Federal Reserve Bank, counseled members in his speech to realize that home ownership isn’t for everyone. Thomas went on to say our country should “change the goal from everyone [owning a home] to insuring that there is shelter, that there is rental property that is affordable,” he said. “It’s an important first step to creating a stable housing market in the long term.”
The rental market will continue to be strong in 2011 and beyond.