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June 10, 2010
National home sales activity will retreat in the coming months due to the expiration of federal tax credits, according to Marcus & Millichap's new national report. Housing demand has bottomed out and entered a “choppy” recovery brought on by improving employment trends, low mortgage rates and lower prices. Weighing against recovery is the likelihood that pent-up demand was released in recent months, and foreclosures will continue to drive down prices. Demand for rental housing will rise as mortgage standards tighten. Apartment absorption will strengthen over the next 18 months, the report states. Apartment vacancy will dip 30 basis points this year to 7.7 percent before improving nearly 100 basis points in 2011.