31 May 2008 - With rising oil prices, a falling dollar and consumer confidence at record lows, many are pessimistic about the U.S. economy. One economist, however, sees a brighter picture and a number of opportunities for those interested in real estate.

I recently had the opportunity of attending a conference in Washington, D.C., where I was able to hear from one of the top economic forecasters in the nation. The speech was by Lawrence Yun, chief economist of the National Association of Realtors, and it focused on the positives in the U.S. economy.

After a stalled economy in the first quarter of this year, Yun believes there will be better times for both the U.S. economy and housing in the final six months of 2008.

One reason he believes we'll see a pick-up in housing sales is because financing is becoming more available. For example, just in the last few weeks, Fannie Mae and Freddie Mac have begun to purchase conforming jumbo loans (mortgages more than $417,000). Ultimately this move has resulted in lower rates for high-dollar loans, saving buyers of higher-priced homes an estimated $3,000 to $4,000 in interest costs each year.

Meanwhile, FHA loans continue to replace nearly extinct subprime mortgages, especially as more lenders become qualified to offer FHA mortgages to their clients.

Government proposals, such as a home-buyer tax credit and permanently higher loan limits for conforming and FHA loans also have the potential to boost the market.

And there are other economic bright spots, according to Yun: Exports have seen solid growth, corporate profits are surprisingly high outside of the financing and home-building sector, and tax rebate checks should provide a boost to consumer spending.

Although Yun spoke mostly about national conditions during his speech, he emphasized that real estate is local, and that market conditions can vary greatly from city to city and neighborhood to neighborhood, making it imperative to work with a Realtor who knows your market.

In particular, Yun mentioned several locations that may offer real estate opportunities over the long run, especially as baby boomers retire and head for the sun.

"Over the long-term, I am very bullish on markets like Las Vegas, Phoenix, Florida. Currently, they are down. Maybe this is a great opportunity for some people to purchase a home before this massive [tide of] baby boomers begin[s] to enter the marketplace."

Although not specifically mentioned in Yun's speech, St. George, also a mecca for retirees, may offer similar opportunities: Home selection is high, real estate has become more affordable, and baby boomer retirees are likely to relocate to Utah's Dixie in the coming years.

Other real estate opportunities may exist in light of rising gas prices. In a separate article, Yun speculated that the price appreciation on large, energy-guzzling homes could lag far behind that of smaller, more efficient ones. Yun also said that homes in downtown locations and those next to rail stations and transportation infrastructure are poised to command higher prices in the years to come.

Regardless of the economic conditions, there can always be opportunities for those who know where to look, even in times of economic uncertainty. For more information about real estate opportunities in your area, contact your local Realtor - because nobody knows Utah real estate like a Utah Realtor.