NAR Leadership Summit Summary, Economic Viewpoint – NAR Economist Lawrence Yun stated the housing stimulus package recently passed will help get buyers off the fence.

There will be a strong pickup in FHA to make up for the current loan issues. The current housing market is stable at 1998 levels; buyers are sitting on the fence however there are now 25 million more people in the US and 13 million more jobs than 1998. It is the current credit conditions that have the buyers in a wait and see mode.

There has been a 5% price decline in markets with a low rate of sub-prime mortgages and a 40% decline in heavily vested subprime mortgage markets. Land prices in rural areas has gone up 9%.

Lawrence predicts that interest rates will go up in 2009 to fight off greater inflation. Past-chairman Alan Greenspan has predicted that the housing market will see price stabilization in early 2009.