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US property market outlook positive in many states, analysts predict

In the New Year property markets in a dozen states are projected to appreciate, demonstrating the development of an improving trend in many markets across the nation, says the Best 25 Market Forecast in 2010 from Florida based Housing Predictor.

Despite the weak economy, property sales are increasing in the majority of the country and are projected to improve over the first half of 2010, boosted by the federal government’s expansion of the homebuyer’s tax credit, it adds.

Four Ohio markets – Cleveland, Columbus, Cincinnati and Toledo – top the list for 2010. This is because prices have gotten so low that analysts predict they have only one way to go, and that is up. These bargain prices could attract a lot of interest.

Markets are also expected to appreciate in cities in Nebraska, Texas, West Virginia, South Dakota, Michigan, Pennsylvania, Louisiana, North Dakota, Delaware, Alaska, and Virginia.   The report said the 12 states represented on the top 25 list include many Midwest and Northern-tier states, which have been less severely impacted by the housing crisis. In all, 44 markets are currently forecast to experience housing inflation in 2010.

The Housing Predictor forecasts more than 250 local housing markets in all 50 states and selects the best 25 markets annually. The markets listed in the Best 25 Market Forecast are those that have the highest possibility of appreciation of all market forecasts for 2010.

Meanwhile the latest report from the National Association of Realtors shows that existing home sales rose again in November as first time buyers rushed to close sales before the original November 30 deadline for the recently extended and expanded tax credit.

Sales, including single family, town homes, condominiums and co-ops, rose 7.4% to a seasonally adjusted annual rate1of 6.54 million units in November from 6.09 million in October and are now 44.1% higher than November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.
Lawrence Yun, NAR chief economist, said the rise was expected. ‘This clearly is a rush of first time buyers not wanting to miss out on the tax credit but there are many more potential buyers who can enter the market in the months ahead,’ he said.
‘We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010,’ he added.