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At the same time that as Lawrence Yun was saying that prices could go up 10% in the next 12 months, Morgan Stanley was coming out with their housing report and in their housing report, given at about the same time that Lawrence Yun was saying the prices were going to rise 10 percent, they came out and said, we estimate a drop of 5 to 10% more on non-distressed housing, notwithstanding historically high affordability metrics.

So one expert is saying there’s going to be a 10% increase in prices over the next 12 months, the other is saying there’s going to be a 5 to 10% decrease in prices.  So again, here lies the confusion.  - Courtesy of KCM Crew

Michele Herndon

813-523-9222

micheleherndon@me.com

http://www.TampaAndBeyond.com

http://www.ApolloBeachLuxuryHomes.com

The second half of the recovery: the pricing piece. There’s a tremendous amount of confusion on this, just like there was tremendous confusion three months ago on the sales piece. Are sales really taking it off? Is it the weather, is it just we got lucky in the first three months? What happened that all of a sudden more and more people started buying houses? There was some confusion about that. Ninety to a hundred twenty days later, where we sit today, we realize no, people want to buy houses. Now the confusion is about pricing. Remember, the pricing piece of the recovery lags behind the sales piece of the recovery. So now that the sales piece has taken off, the pricing piece is coming into question because it’s bouncing around. There’s no better proof of this than two quotes we found, that came out in the last couple of weeks. The first quote is from Lawrence Yun at the National Association of Real Estate Editors conference in Denver. Lawrence Yun is NAR’s chief economist. “This time next year there could be a 10% price appreciation. I would not be surprised to see that.” So, Lawrence Yun is saying that prices could go up 10% in the next 12 months. – Courtesy of KCM Crew

Michele Herndon

813-523-9222

micheleherndon@me.com

http://www.TampaAndBeyond.com

http://www.ApolloBeachLuxuryHomes.com