NAR Sees Silver Lining.(National Association of Realtors)(real estate marketing)

Orlando, FL-National Association of Realtors' chief economist Lawrence Yun sees encouraging signs of stabilization in the real estate market alongside credit problems, decreases in home values and rising foreclosures nationwide.

Addressing a housing market outlook seminar at the 2008 Realtors Conference & Expo here, Mr. Yun said improved affordability is contributing to lower new and existing home inventory.

As measured by NAR's Housing Affordability Index, affordability is as high as it's been since 2003, he said, with the current index at 130. It means a family earning the median income has 130% of the income necessary to qualify for a conventional loan covering 80% of a median-priced existing single-family home.

These data, however, are bittersweet since according to Mr. Yun, improved affordability and rising home sales are reported in areas that have seen the most marked home value declines.

"Some homeowners who were hesitant before have realized that, in many cases, now is a good time to buy a home."

NAR's most recent existing-home sales report shows the national price for all housing types was $191,600 in September, down 9% from one year ago when the median was $210,500.

In the third quarter of 2008, total U.S. housing valuation stood at $20.3 trillion, down from $22.4 trillion in the third quarter of 2007, but approximately equal to overall valuation at the end of 2005.