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A New Housing Bubble???!!

July 20, 2011

If you heard my talk last evening at WIM, you know I believe that the housing market is turning around, but that we won’t see extreme appreciation in real estate for the foreseeable future.  And I think that is healthy.  I found this article from Inman News very interesting.

Lawrence Yun, chief economist for the National Association of Realtors is predicting another housing bubble, but this one relates to building demand for new houses.  In recent years, the number of new households formed has been about half the historical norm – one of the many statistics tracked by NAR.  This contraction is due to the recent economy: parents moving in with children, children and their families moving in with parents, divorced couples staying in the same house, and friends living together longer – all in temporary living situations.  As the economy moves out of the recession and the current excess inventory in the housing market is reduced, demand for housing is expected to rise.  Yun predicts that new housing units will have trouble keeping up with demand at first, but that we will see prices for homes and rent increasing as a result.  The pendulum is poised to swing the other way.

Read more about it here: http://www.parjustlisted.com/archives/8236?utm_medium=email&utm_campaign=2b79fb032f-RSS_EMAIL_CAMPAIGN&utm_source=PAR+Just+Listed+Daily+E-News#utm_source=feed&utm_medium=feed&utm_campaign=feed

Patty Cunningham, Realtor®
Coldwell Banker Preferred
Exton, PA 19341
O.        610.363.6006
C.        610.659.4669
Lic #RS294054

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