NAR: Home Sales Should Rise 15% Next Year

San Diego, Nov. 16, 2009--Home sales should rise about 15% next year, as buyers take advantage of a home-buyer tax credit and housing prices stabilize, the National Association of Realtors' chief economist Lawrence Yun predicted on Friday at the group's annual conference in San Diego.

The industry group is forecasting 5.69 million existing home sales in 2010, up from an anticipated 5.01 million this year. About 549,000 new-home sales are projected for next year, up from an estimated 397,000 this year, he said.

"The fear factor will no longer be at play in 2010," Yun said. Many consumers feared that home prices would continue to fall and decided to postpone their purchases until the values were finished declining, he said. But next year, those who remained on the sidelines will believe prices have hit bottom.

And they'll take action -- if they have a job.

Yun said unemployment could remain about 10% during 2010, but it "will not deter those people with jobs from making home-purchase decisions."

"By putting cash in the hands of financially healthy home buyers, the credit will continue to help draw down inventory and stabilize home prices to encourage a strong and sustainable housing recovery," NAR President Charles McMillan said in a news release about the expanded home buyer tax credit.

To qualify for the credit, buyers have to have a binding contract on a property in place by April 30, and need to close on the sale by June 30. Yun said there is a strong sentiment in Washington that the credit won't be extended again. He also thinks that it might not be needed.