Home sales are expected to stay on an uptrend through 2012, although the performance will be uneven with mortgage constraints weighing on the market, according to experts at a residential real estate forum today at the Realtors® Midyear Legislative Meetings & Trade Expo here.
Lawrence Yun, NAR chief economist, said existing-home sales have been underperforming by historical standards and will rise gradually but unevenly. “If we just hold at the first-quarter sales pace of 5.1 million, sales this year would rise 4 percent, but the remainder of the year looks better,” Yun said. “We expect 5.3 million existing-home sales this year, up from 4.9 million in 2010, with additional gains in 2012 to about 5.6 million – that’s a sustainable level given the size of our population.”
Mortgage interest rates should rise gradually to 5.5 percent by the end of the year and average 6.0 percent in 2012 – still relatively affordable by historic standards.
“A huge volume of cash sales, supported by the recovery in the stock market, show that smart money is chasing real estate. This implies that there could be a sizeable pent-up demand if mortgages become more readily accessible for qualified buyers,” Yun said. “The problem isn’t with interest rates, but with the continuation of unnecessarily tight credit standards that are keeping many creditworthy buyers from getting a loan despite extraordinarily low default rates over the past two years.”
Yun said that if credit requirements returned to normal, safe standards, home sales would be 15 to 20 percent higher. He added that some parents are buying homes with cash for their children, and offering them loans which provide better returns than bank accounts or CDs.
Yun projects the Gross Domestic Product to grow 2.5 percent this year and 2.7 percent in 2012, adding 1.5 million to 2 million jobs yearly over the next two years. The unemployment rate should decline to 8.8 percent by the end of 2011 and average 8.6 percent next year, returning to a normal level of 6 percent around 2015.
Housing starts are forecast to rise but remain below long-term trends, reaching 603,000 in 2011, up from 595,000 last year, and continue growing to 908,000 in 2012. New-home sales are seen at a record low 320,000 this year, rising to 487,000 in 2012. “A recovery in new homes will be slow because of the extra price discount in the existing home market,” Yun noted. In March, the typical new single-family home cost $53,300 more than an existing home.
Inflation appears to be relatively modest for now, with the Consumer Price Index rising 2.9 percent this year. “We’ll be closely watching the impact of fuel costs on consumer spending and inflation – that would slow economic growth, job creation and home sales,” Yun said.
Apartment rents are trending up, and are likely to rise at faster rates as vacancies decline. Following the correction in home prices, it has now become more affordable to buy in most of the country. “Twice as many renters had enough income to buy a home in 2010 in comparison with 2005, so we have a much larger pool of financially qualified renters,” Yun said. “Rising rents and excellent housing affordability conditions will encourage potential buyers who’ve been on the sidelines.”
Yun expects the median existing-home price to remain near $170,000 over the next two years, which would mark four consecutive years of essentially no meaningful price change.
Frank Nothaft, chief economist at Freddie Mac, holds similar views on the outlook. “Economic activity will accelerate this year – there will be no double dip in the economy,” he said. Nothaft is more optimistic on job growth, expecting 2.0 million to 2.5 million jobs created in 2011 with unemployment dropping to 8.4 percent by the end of the year.
Nothaft expects the 30-year fixed-rate mortgage to trend up to 5.25 percent by the end of the year, and for home sales to rise 5 percent. “National home price indices are close to a bottom and prices are likely to bottom sometime this year,” he said.
Refinancing activity in 2011 will be only half of what it was last year. “As a result, banks may become more willing to lend to home buyers,” Nothaft said.
Friday, July 22, 2011
Thursday, July 21, 2011
Framingham Farmers Market - TODAY
Where: Edgell Rd & Vernon St, Framingham, MA 01701 (Village Green)
Date: Weekly on Thursdays
Time: 12:00pm–5:30pm
Next on: Today, July 21, 2011
Farmer's Market on the Village Green will feature produce from several local farms, a seafood vendor, a beef merchant, fresh sweet kettle corn and fresh baked breads!
Support local farmers!
Date: Weekly on Thursdays
Time: 12:00pm–5:30pm
Next on: Today, July 21, 2011
Farmer's Market on the Village Green will feature produce from several local farms, a seafood vendor, a beef merchant, fresh sweet kettle corn and fresh baked breads!
Support local farmers!
Monday, July 18, 2011
Natick Art Walk
Date: Thursday, July 21, 2011
Time: 5:00 PM to 8:30 PM
Venue: Historic Natick Center
Address: 20 Main Street, Suite 208 Natick, MA
Art Walk - a free summer festival will be celebrated in historic Natick Center. This will be the only Art Walk held this summer and it promises to be the largest yet. In the case of inclement weather, the Art Walk will be rescheduled for the following Thursday – July 28th from 5:00pm to 8:30pm.
During this special celebration, attendees can enjoy light refreshments while viewing the work of local artists across a wide range of mediums. Please call 508-653-2526 or visit www.natickcenter.org for additional details.
Time: 5:00 PM to 8:30 PM
Venue: Historic Natick Center
Address: 20 Main Street, Suite 208 Natick, MA
Art Walk - a free summer festival will be celebrated in historic Natick Center. This will be the only Art Walk held this summer and it promises to be the largest yet. In the case of inclement weather, the Art Walk will be rescheduled for the following Thursday – July 28th from 5:00pm to 8:30pm.
During this special celebration, attendees can enjoy light refreshments while viewing the work of local artists across a wide range of mediums. Please call 508-653-2526 or visit www.natickcenter.org for additional details.
Saturday, July 16, 2011
Tradition Wins: The Natick "Mall" Returns
The Natick Collection has announced that it will change its name back to the "Natick Mall" and return to tradition.
By Alissa Letkowski
July 15, 2011
When the new addition was built at Natick Collection in 2007, introducing high-end store such as Neiman Marcus and Nordstom, the "Natick Mall" name had a makeover of its own.
Since then, the largest mall in New England has been known as "Natick Collection," to the dismay of many locals who were uncomfortable with the change. But this month, the 200-store retail landmark has begun its transition back to its nostalgic name.
"For no other reason but to acknowledge tradition, we have returned to referring to the shopping center as Natick Mall. Tradition is important to us," said senior marketing manager Allyson Reed.
"Many of our shoppers have grown up shopping here and have always referred to us as Natick Mall. Our retailers refer to us as Natick Mall. It is a name and a tradition about which we are very proud.”
Although Reed said the signage changes outside the mall will be gradual, there are already signs that the tradition is returning.
A visit to the old website, www.NatickCollection.com automatically bumps one to www.NatickMall.com and the voicemail system now refers to the Natick Mall.
By Alissa Letkowski
July 15, 2011
When the new addition was built at Natick Collection in 2007, introducing high-end store such as Neiman Marcus and Nordstom, the "Natick Mall" name had a makeover of its own.
Since then, the largest mall in New England has been known as "Natick Collection," to the dismay of many locals who were uncomfortable with the change. But this month, the 200-store retail landmark has begun its transition back to its nostalgic name.
"For no other reason but to acknowledge tradition, we have returned to referring to the shopping center as Natick Mall. Tradition is important to us," said senior marketing manager Allyson Reed.
"Many of our shoppers have grown up shopping here and have always referred to us as Natick Mall. Our retailers refer to us as Natick Mall. It is a name and a tradition about which we are very proud.”
Although Reed said the signage changes outside the mall will be gradual, there are already signs that the tradition is returning.
A visit to the old website, www.NatickCollection.com automatically bumps one to www.NatickMall.com and the voicemail system now refers to the Natick Mall.
Friday, July 15, 2011
Garden In The Woods: Free Fun Friday
Where: Garden In The Woods, 180 Hemenway Rd, Framingham,
Date: July 15, 2011 .
Time: 9:00am–4:30pm .
On July 15, 2011, the public is invited to Garden in the Woods and enjoy FREE admission to the Garden through the Highland Street Foundation's Free Fun Fridays program. Free Fun Fridays invites Massachusetts residents and tourists to visit designated cultural attractions every Friday this summer with free admission. No registration or tickets required. Visit and enjoy!
Features: Open to All .
Website: http://newenglandwild.org/visit/Garden-in-the-Woods/free-fun-fridays.html .
Phone: 508.877.7630 .
About This Location
Garden in the Woods is the New England Wild Flower Society's living museum. It showcases more than 1,000 flora varieties of indigenous to New England.
The landscape transforms as the seasons shift, offering visitors a different experience with every stroll. The gift shop offers the garden's featured varieties for sale. Public tours are offered once daily. Groups may also schedule tours in advance.
Its education center is a window-lines space overlooking the gardens. It is available for private parties, speciali events and meetings or conferences. The facility accommodates up to 75 guests.
Other events here;
Animal Adventures Tue, Jul 19, 10:00am–11:00am .
Cattail Nature Kids July 26, 2011 / July 27, 2011 / July 28, 2011 / July 29, 2011, 9:30am–12:00pm .
Closing Day Garden In The Woods Mon, Oct 31, .
Date: July 15, 2011 .
Time: 9:00am–4:30pm .
On July 15, 2011, the public is invited to Garden in the Woods and enjoy FREE admission to the Garden through the Highland Street Foundation's Free Fun Fridays program. Free Fun Fridays invites Massachusetts residents and tourists to visit designated cultural attractions every Friday this summer with free admission. No registration or tickets required. Visit and enjoy!
Features: Open to All .
Website: http://newenglandwild.org/visit/Garden-in-the-Woods/free-fun-fridays.html .
Phone: 508.877.7630 .
About This Location
Garden in the Woods is the New England Wild Flower Society's living museum. It showcases more than 1,000 flora varieties of indigenous to New England.
The landscape transforms as the seasons shift, offering visitors a different experience with every stroll. The gift shop offers the garden's featured varieties for sale. Public tours are offered once daily. Groups may also schedule tours in advance.
Its education center is a window-lines space overlooking the gardens. It is available for private parties, speciali events and meetings or conferences. The facility accommodates up to 75 guests.
Other events here;
Animal Adventures Tue, Jul 19, 10:00am–11:00am .
Cattail Nature Kids July 26, 2011 / July 27, 2011 / July 28, 2011 / July 29, 2011, 9:30am–12:00pm .
Closing Day Garden In The Woods Mon, Oct 31, .
Monday, July 11, 2011
Canoe and Dinner on the Charles
date: Friday, July 15, 2011time:6:00 PM to 9:00 PM
venue: Broadmoor Wildlife Sanctuary
address: 280 Eliot St (Rt 16) Natick Natick, MA 01760
Start the weekend with a relaxing canoe trip. Enjoy paddling the calm waters of the Charles. Watch the sun set over the river and listen to the sounds of nature. Finish the trip with a river-side catered dinner.
Information, including directions to meeting location, will be emailed after registration. Canoes, paddles, lifejackets, a basic paddling overview & guides are all provided. Pre-registration required.
cost:$39.00m/ $45.00nm
venue: Broadmoor Wildlife Sanctuary
address: 280 Eliot St (Rt 16) Natick Natick, MA 01760
Start the weekend with a relaxing canoe trip. Enjoy paddling the calm waters of the Charles. Watch the sun set over the river and listen to the sounds of nature. Finish the trip with a river-side catered dinner.
Information, including directions to meeting location, will be emailed after registration. Canoes, paddles, lifejackets, a basic paddling overview & guides are all provided. Pre-registration required.
cost:$39.00m/ $45.00nm
Thursday, July 7, 2011
Framingham Farmers Market
Where: Edgell Rd & Vernon St, Framingham, MA 01701 (Village Green) .
Date: Weekly on Thursdays .
Time: 12:00pm–5:30pm .
Next on: Today, July 7, 2011 .
Farmer's Market on the Village Green will feature produce from several local farms, a seafood vendor, a beef merchant, fresh sweet kettle corn and fresh baked breads!
Support local farmers!
Features: Open to All, Outdoor
Date: Weekly on Thursdays .
Time: 12:00pm–5:30pm .
Next on: Today, July 7, 2011 .
Farmer's Market on the Village Green will feature produce from several local farms, a seafood vendor, a beef merchant, fresh sweet kettle corn and fresh baked breads!
Support local farmers!
Features: Open to All, Outdoor
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