Economy, affordability to drive home sales growth
WASHINGTON – May 16, 2011 – Home sales are on track to outperform last year, even though the market doesn’t have the benefit of the homebuyer tax credit, NAR Chief Economist Lawrence Yun told a packed room on Thursday during the Residential Economic Update at the 2011 Realtors® Midyear Legislative Meetings.
Both Yun and Nothaft predict home sales a little higher than 5 million, which would improve upon last year even though 2010 had the artificial stimulus of the tax credit.
Historically high affordability is one of the key drivers of the improved sales performance. NAR’s affordability index is at its highest level ever, at nearly 170, which means households earning the national median income have 170 percent of the income needed to buy a home at the national median price.
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