NAR Chief Economist predicts better economy in the second half of 2008

The National Association of Realtor's Chief Economist Lawrence Yun is predicting a stronger economy in the second half of 2008. He says that the economy is "crawling" now, not in a recession. He thinks that the economy will improve for several reasons. First, the government rebate checks have historically stimulated the economy temporarily. Also, aside from the housing industry, many companies are experiencing high profits. Because of the weak dollar the U.S. is exporting more than usual. There is a pent-up demand for housing, partly because of consumer pessimism, and partly because of the disappearance of the sub-prime market. More buyers are getting FHA loans now and it helps that the government recently increased the upper limits of the loan amounts.

He also predicts that several markets with decreasing home values will soon turn around. Many baby boomers will be retiring over the next few years and retirees tend to move to the "sunshine" states, including those where the housing market has been struggling since the end of subprime loans, like Florida and California. The home values have already been steadily increasing in several states, especially in the Northwest and Mountain states. If you're thinking about buying a home, now is the time to get started!