May 22nd, 2009 7:25 AM

Historically low interest rates and low prices combine to put housing affordability at an all-time high, according to NAR Chief Economist Lawrence Yun. Speaking at NAR's Midyear Legislative Meetings in Washington, D.C., Yun offered his analysis of the current national and regional housing picture, as well as his predictions for the future of the industry.

 

"We're overshooting downward, which sets the stage for a big upswing," Yun stated. "Any further decline is over-correction at this point," he added.

 

Early summer will be a critical time to see how buyers are responding to the federal stimulus package, Yun said. He cautioned Realtors® to encourage buyers to stay within their budgets and called for sound underwriting standards. "We want sustainable homeownership," he said.

 

Yun noted that the credit crunch appears to be easing somewhat. He predicts some economic recovery in 2010, with national unemployment edging higher - to 10.5 percent - before stabilizing.

 

People buying today could see slight increases in value by next year, Yun concluded. "Today's homebuyers are perfectly positioned to hedge inflation," he said.  

 

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