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Realtors Expect Home Prices To Rise

Home prices are expected to grow modestly during 2010 and sales should keep slowly rising as the housing market continues to recover, the National Association of Realtors® (NAR) reported yesterday.

National home re-sales are projected to total 5.7 million next year, up from about 5 million this year. NAR is estimating prices will climb about 4 percent after a projected decline of 13 percent in ’09 according to NAR’s chief economist.

Locally for the entry-level homes (under $500,00), I see the bottom as being clearly here now. First-time buyers accounted for a record 47 percent of home sales this year, up from 41 percent last year. And with the recent extension of the first time buyer federal tax credit, entry-level inventory should continue to tighten up.

On the flip side more than half the inventory is above entry-level prices, so it’s those properties and those potential buyers that will tell the rest of the real estate story during 2010.

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