November existing home sales disappointed, but experts say November is an aberration. Housing market will grow in 2015. Shartia Brantley reports.
Existing home sales disappointed in November, but experts say don't sound the alarm just yet. There are many other positive economic signals to watch. Lawrence Yun, Chief Economist, National Association of Realtors: SOUNDBITE: LAWRENCE YUN, CHIEF ECONOMIST, NATIONAL ASSOCIATION OF REALTORS (ENGLISH) SAYING: "The November figures are disappointing so even though it is up from one year ago all the data are are seasonally adjusted so it takes into account of the normal slower November figure. And the data is pointing that it is a large decline compared to the month prior. We hope that this is an aberration I believe it is a fluke because there are many factors that will say that home sales will be rising in the upcoming months." These include an improving labor market, exceptionally low mortgage rates and record highs in the stock market. But access to credit remains a major hurdle for potential homebuyers. Melissa Cohn (pronounced CONE), President of GuardHill Financial: SOUNDBITE: MELISSA COHN, PRESIDENT, GUARDHILL FINANCIAL (ENGLISH) SAYING: "You have to have great credit. You have to have a lot of liquidity left over once you close you have to have a constant stream of income without seeing any decreases which unfortunately due to what's happened to us economically over the six seven years has some people have not been able to to make the same amount of money every year." As Fannie Mae and Freddie Mac relax housing rules in 2015, the housing market is expected to grow. SOUNDBITE: LAWRENCE YUN, CHIEF ECONOMIST, NATIONAL ASSOCIATION OF REALTORS (ENGLISH) SAYING: "It will be better, bottom line home sales are projected to rise 5 to 7 percent. Home price to increase 3 to 5 percent." While volatility in the stock market poises a concern, analysts note that the housing market will be on a firmer foundation in the coming months.