NAR Forecasts Home Prices to Recover in ‘08 From Greater Boston Real Estate Board
The National Association of REALTORS® has estimated that housing prices will recover in 2008 due to a decline in housing inventory. Buyers currently have a wide selection of homes to choose from, but with profit margins coming under pressure, new construction will be limited by homebuilders in 2008; which will cause inventory levels to move steadily into a more balanced state, according to Lawrence Yun, NAR senior economist. Notably, the number of homes on the market has already started to shrink in greater Boston; where the supply of single-family homes for sale declined 16 percent during the second quarter of 2007, compared to the same three-month period last year. As a result, the median selling price for detached single-family homes was essentially flat in the spring quarter, slipping just 1 percent from $499,900 in the second quarter of 2006 to $495,000 in the April-June period this year. To view all the second quarter housing market data for communities in the Greater Boston Real Estate Board's jurisdiction, check out the latest edition of Real Estate Rewind, GBAR's quarterly report on the single-family and condominium markets. NAR experts predict home sales will pick up later this year, rising to a total of 6.11 million for 2007 and 6.37 million in 2008. Both numbers are lower than the 6.48 million in 2006. In addition, NAR's report also shows that new-home sales are expected to reach 865,000 in 2007 and then 878,000 in 2008 compared to 1.5 million in 2006. Meanwhile, existing home prices are estimated to rise 1.8 percent to a nationwide median price of $222,700 in 2008, after a 1.4 percent decline this year to $218,800. The median new home price should rise 2.2 percent to $245,400 in 2008 following a 2.6 percent drop in 2007 to $240,100. Yun predicts, "Markets that sharply reduce construction in 2007 will generally experience respectable price increases in 2008." "Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first-time buyers with a long-term view to test the housing waters." Looking to stay informed about Milton, Massachusetts Real Estate? Log onto the ultimate source for local real estate information @ http://www.02186.com/ I have a great single family for $460,000 @ 10 Elm Street. You can see more @ http://www.10elm.com/ With the renovated public school buildings and close proximity to Boston. You cannot beat the value the Milton real estate market offers a first time home buyer. Money Magazine also just named Milton as the 7th best place to live in the country. Click here to see the Money Magazine Report.
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Michael Mahoney
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Coldwell Banker Residential Brokerage
http://www.mmahoney.com/
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