The current real estate market slow down is temporary according to RIS Media, a leading Real Estate Informational tool. The market is expected to reverse back to growth in mid-2008. This is a fantastic opportunity for buyers to seize this day! The following is taken from recent RIS Media release:
The National Association of Home Builders (NAHB) told Congress that the current downswing in home sales and housing production following the record housing boom of 2004-2005 is expected to bottom out around the middle of next year and gradually move back up toward trend by late 2008.
Testifying before the Senate Economic Policy and Housing and Transportation Subcommittees, NAHB chief economist David Seiders said that while the housing downswing still has some distance to go, "various economic and financial market fundamentals figure to be supportive of housing demand for the foreseeable future."
These fundamentals include the following:
- Payroll employment is proceeding at a decent and sustainable pace.
- Household income growth is strengthening as the economic expansion proceeds.
- The interest rate structure is favorable, mortgage credit is readily available and monetary policy has stabilized following a long run of upward rate adjustments.
- Energy prices have receded from record highs earlier this year.
And while the current downswing in home sales and housing production will continue to detract from overall economic growth through mid-2007, Seiders said that much of this negative impact should be offset by strengthening activity in other sectors of the U.S. economy (spending on capital equipment and software, nonresidential structures and exports).