National Association of Realtors predicts 4% gain for housing in 2010


The good news: National Association of Realtors chief economist Lawrence Yun is predicting that home prices will rise 4% in 2010.

The bad news: Lawrence Yun has never been right about anything in his entire life, ever.

Yun predicted that sales volume will also rise about 14%. I'm definitely not smart enough to try to make short-term predictions about what will happen with home prices or sales volume. But the track record suggests that Lawrence Yun isn't smart enough either.

In July of 2008, Yun opined that "I think we are very near to the end of the housing downturn. In June of 2008, Newsweek guru Daniel Gross wrote that "Yun is the Little Orphan Annie of forecasters. He's always sure the sun will come out tomorrow." Lawerence Yun Watch is an entire blog devoted to exposing Yun's track record of poor predictions.

And as much as it pains me to link to a video of Glenn Beck, he actually has a pretty good exploration of the disastrous predictions of the National Association of Realtors' economists. (see below)

So what will happen with housing in 2010? I have no idea. But don't get your hopes up based on Little Orphan Annie's mumblings about price increases.