Expert: Job market recovery ‘key’ for real estate growth

An improving job sector can help a struggling real estate market.In a recent interview with The Huffington Post, Lawrence Yun, chief economist for the National Association of Realtors, expressed confidence in the country's real estate market.While Yun described the recovery of the nation's housing sector as “very sluggish,” he explained that home sales this year would outperform the total from 2010, if they stay on their current pace.Furthermore, while the national median home price declined 5 percent from the previous year, certain markets with strong job sectors have seen improvements with prices. In areas with solid employment, such as North Dakota and Texas, prices have been firmed up or increased.”The job market will be the key driver for everything in the housing sector,” Yun told the news source.In addition to job markets, the country's mortgage industry may act as a driving force. Currently, interest rates among lenders are at a “generational low,” which may lead property seekers that were previously on the fence to enter the real estate market. With interest rates for home loans low and prices of homes for sale declining in some regions, the nation's housing sector may improve soon.A recent Metrostudy report found the Houston real estate market recorded fewer housing starts and sales during the second quarter. However, the region's median property price was up significantly.Courtesy of 2M Realty News

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