Special guest at Realtors’ Luncheon

Special guest at Realtors’ Luncheon

Economist Yun addresses association

news@theeveningtimes.com

“Sit up and pay attention!” Good teacher’s advice whenever a special guest came to class. Members and guests sat up and paid attention to the Eastern Arkansas Realtors Association April meeting at the Meadowbrook Country Club.

The luncheon gathering featured the Chief Economist for the National Association of Realtors, Dr.

Lawrence Yun.

He sure looked familiar to many and as it turns out he sits in on network news shows as an expert on economics, mortgage rates and all things real estate. Dr.

Yun provided an in person detailed download in the keynote address.

Many have trouble seeing key indicators in the mixed soup of economic statistics and Yun stirred up some confusing observations before clearing them up with his expert analysis. He pointed out that personal wealth is at all time high and rent is at a seven year peak while mortgage rates are low, home ownership at a 20 year bottom and the national deficit shrinking.

Yun painted a picture of the last decade as he examined the various trends and pointed to the rally in real estate.

“Imagine yourself ten years ago, ten years younger,” said Yun to the Realtors. “However it was an awful time because that is when the real estate bubble began to pop. For a few years with low activity conditions many real estate brokerages were just asking the question will I survive through the next year or not. Fortunately, we are past that stage and in a recovery mode. Nationwide we are seeing home sales increases. Prices are firming up so you are getting increased volume dollar opportunities both on numbers of transactions as well as price increases.”

With the number of building permits for new homes remaining low Yun said the comeback currently centers on existing home sales. A number of factors added up to an optimistic outlook from the expert.

There are many good factors,” said Yun. “Homeowners have now built up equity. Their home prices are rising and they can use their equity for the down payment on the next purchase. Credit conditions are stabilizing opening up the credit box. Return of the boomerang buyers, people that went through foreclosures when the bubble burst have sat in the penalty box that long and they can reenter the market. Finally job creation is super good.”

With the good news about jobs the audience waited to hear the local economic forecast.

“Economic development costs are low here,” said Yun.” One of the great assets you have here is affordable land and home prices,” said Yun. “Even companies coming here look at the cost of production which is very, very low

here.”

By John Rech