This feature will be continually updated with new information as the real estate market conditions change.
In the short term, a few personal comments on the ** Market Outlook here will give some perspective as to what is likely in 2007
The NEW housing market remains overbuilt for the current demand. A number of planned new developments have been put on hold. The resale market has accumulated many more available properties with market times greatly increased but that number has declined over the holidays and with the spring market in focus, those numbers will start increasing again.
The long term interest rates have been steady in the low 6's and will likley remain low for the 1st quarter . Taken overall, we still see a bit of a cooling trend in overall demand very early in the year, putting more pressure on prices to soften in the short term. The Spring and summer markets will see increasing activity with the numbers increasing a little over last year and will be at a healthy pace for sales.
Appreciation for 2007 will obviously vary by type of real estate product and location but overall I would predict a 2% to 3% average appreciation for the year 2007 in most areas. We did have some price corrections in various sectors of the market late in 2006.
Buyers can and will be more discerning and with more choices. Buyers will still be testing the waters and will determine just how active or soft the market will become. Buyers will collectively do better in negotiating in 2007 for price and terms and the Buyers will have more choices than in the past years. Sellers would do well to price more conservatively than in the past as well .
Sellers should have any needed repairs and upgrades done by qualified professionals prior to going on the market. Buyers have not looked to favorably on seller made improvements but continue to seek out the professional level upgraded properties. A Home with show appeal that has been well cared for , improved and priced correctly will still be a hit in the market this year. One thing is certain. The market is still correcting and those that expect to productively participate will need up to date information on the specific areas of interest. I look forward to providing you with that information.
Summer 2007: The market will gradually improve and a few more Buyers than maybe would be expected will be selecting from the more reasonable amount of inventory of Homes and Condos. Interest rates will tick upwards to the higher end of 6% as demand picks up before the fall of 2007.
Fall 2007: Interest rates will then drop back to the lower end of 6% as we near more the end of the fall market, regrettably right along with a bit more home price correction. Though I do not expect to see major price corrections in 2007, lower price corrections in the 2% to 3 % range in some areas through the end of the year would be expected.
Don't confuse price corrections with just "lower value". Many of the most dramatic price corrections are in areas with the greatest overvalued properties in the first place. Yes, it is still possible to have downward price corrections with a fair level of real appreciation. The "Market Value" of a property is determined by what a willing Seller and Buyer agree to. Most of the severe price corrections were those made when the market value was determined by only one of the needed two parties it takes to determine the real market value. The closer you set the " Market Price to what will actually be the "Market Value", the faster the property will sell. Otherwise many Sellers will be in for a very long frustrating waiting game. Be reminded, that game has very few winners.
Market prices will continue to soften in the condo market in the early spring of 2007 with an expected uptick in sales from all the previous 2006 price corrections as we begin the new year, with a few areas actually increasing in the 2% to 3% range of new appreciation. This is as much a supply and demand issue as it is an adjustment of the inflated prices from 2004 and 2005. With all the factors considered, it is my belief that sales overall will be stronger in 2007.
**This "Market Outlook" is my opinion and before making any decisions about Buying and Selling in this market, I would recommend your own careful research of other factors and other qualified opinions. One person's opinion is just that and should not be relied upon for important business decisions. The market is full of other forecasts/opinions that vary in scope and detail.
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