FUTURE OF THE HOUSING MARKET

By
Real Estate Agent with Lake Tahoe Real Estate CA and RealtyExecutives NV

 

 

 

                                     WILL THE MARKET IMPORVE BY THE END OF THE YEAR?????

 

ACCORDING TO LARRY YUN OF THE NATIONAL ASSOCIATION OF REALTORS HE GOES OUT ON A LIMB AND SAYS YES AND HERE IS WHY:

1.THERE IS A PENT UP DEMAND WITH NEARLY 4 MILLION NEW JOBS SINCE THE DOWN TURN OF THE MARKET IN THE MID 2005 AND THE AVERAGE WAGES HAVE RISEN ABOUT 7%.  THE HOUSEHOLD INCOME HAS RISEN TO $56.2 TRILLION AS OF THE FIRST QUARTER.

2.A TYPICAL FAMILY GROWS ABOUT 1.5 MILLION A YEAR BUT FOR THE FIRST QUARTER IT HIT 1/2 MILLION.  IT SUGGESTS THAT PEOPLE ARE HOLDING BACK DUE TO THE UNCERTAINTY OF THE MARKET WHICH RESULTS IN PENT UP DEMAND.

3. RENTS ARE ON THE RISE WITH THE HESITATION IN BUYING THE RENTERS ARE FEELING SQUEEZED SO BUYING IS LOOKING MORE INTERESTING.

4.BACK TO BASICS WITH MORTGAGE LENDING THE 100% LOANS ARE VERTUALLY GONE AT LEAST FOR THE PRESENT REMEMBER FHA FINANCING LOOKS PRETTY GOOD NOW.

5. OUR FALLING DOLLAR BRINGS BIG INTEREST TO THE FOREIGN INVESTOR... TEAM THAT UP WITH THE FALLING PRICES , EUROPEANS CAN NOW AFFORD THAT SECOND/ VACATION HOME, REMEMBER THE INTEREST RATES REMAIN UNDER 7% IN TODAYS MARKET.

6.  INFLATION LOOKS STABLE AND COULD SLIDE IF THE FEDS CUT THE INTEREST RATES.  SO ALL IN ALL THE BUYERS WHO CONSIDER INVESTING NOW COULD HAVE A BIG SMILE ON THIER FACES IN THE FUTURE.

 

DENNIS LINDSAY

Comments (3)

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Hate to be a wet blanket, but prices increased in MD and Northern VA about 100% between 2001 and 2005.  Yet, incomes increased 18%.

There is a disconnect here.

I don't see our market recoveing for another 2 years or so. 

Sep 06, 2007 11:41 AM
Craig Smith
Re/Max Achievers - Frederick, MD
Frederick MD Real Estate
I'm with Lenn. At least here in MD I don't see it getting better anytime soon.
Sep 06, 2007 12:20 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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Sep 28, 2017 07:13 PM