Here are some of the high points of Lawrence Yun, the chief economist for NAR, presentation as it pertains to housing in 2007and a forecast for 2008. For a complete report you can contact me and I will forward it to you. Some of this is national in scope and there are local predictions as well.
•· Much of the subprime mortgage problem can be traced to Wall Street wanting 10-12% return.
•· 2008 will see a shift from greedy speculators to serious homeowners. This is the year of opportunity with 2009 seeing the market returning to normal.
•· Why do reporters talk of national trends on the news, they are largely irrelevant when all real estate markets are local in their dynamics! Incidentally 2007 will go down as the 5th highest sales year in history.
•· 41% of the increase in foreclosures are from investors of property in Arizona, California, Florida and Nevada.
•· Coastal markets remain overpriced, while middle America is underpriced.
•· Indicators see a pent up demand for the Generation Y (born after 1977) who are now buying their first home.
•· Economy has generated over 4 million jobs and wages are rising.
•· A weak U.S. dollar will attract more foreign investment (primarily from Canada and Europe) as they see our property nearly 50% cheaper than 3 years ago.
•· 2008 is the best window for excellent deals with excellent financing. Prices to be higher in 2009.
•· Subprime lending will definitely not return to where it had been a year ago. FHA will be a safer choice.
•· Despite all the "negative" media coverage on housing, home prices in this region have largely held on average. One principal for the price stability is the fundamentally sound local economy.
•· Pent-up demand is thought to be strong in our area and the recovery is around the corner. Expect higher home prices next year.
Sources include Inman News, Greater Springfield Board of Realtors
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