Bill's Real Estate Blog - News to Use!

The Chief Economist for the National Association of Realtors, Lawrence Yun, was in Colorado Springs on Wednesday.  I had the opportunity to listen to him speak at the Pikes Peak Association of Realtors meeting, giving a 90-minute overview of the current economy, as well as his outlook for 2011.

He confirmed that the downturn for the Colorado Springs housing market was not as severe as for the rest of the country, and as a result our local housing market is poised for a faster recovery. Mr. Yun also confirmed that home prices in many areas have stabilized, and interest rates will rise to 5.5 percent this year, and head toward 6 percent in 2012.

Looking farther to the future, Mr. Yun projects rising apartment rental rates will push more renters to purchase.  He also sees a possible housing shortage in a few years, because homebuilders are currently having difficulty obtaining financing.  As far as unemployment, much will depend on the confidence of businesses who are turning around and growing their cash reserves.  If they begin to spend again, more jobs will be created quickly and the economy will turn faster.