Real estate expected to flounder in 2007. Although few experts predict that home values will fall dramatically in 2007, many economists say that prices won't improve for 12 to 18 months. And without the cushion of rising home equity -- which softened the blow of high oil prices last year and kept consumers buying big-ticket items at a rapid clip -- Americans may lose confidence in their finances, and the broader economy is likely to suffer. "We are currently experiencing the worst of the market freeze, which is being exacerbated by the gap between the buyer's desire for bargains and the seller's fantasy of what they once thought their homes would be worth," said Diane Swonk, chief economist for Chicago-based Mesirow Financial, who forecasts a rebound in early 2008. "The good news is that there are some signs of stabilization. The bad news is that a substantial backlog of unsold homes still exists." The number of Californians who could comfortably pay the mortgage on an entry-level home fell to 24 percent in the third quarter -- down from 44 percent in 2003, according to the California Association of Realtors. Source.
Foreclosures Increase 4 Percent in November According to RealtyTrac(TM) U.S. Foreclosure Market Report. November's Foreclosure Rate Highest of the Year
Activity Up 68 Percent From November 2005. RealtyTrac®, the leading online marketplace for foreclosure properties, today released its November 2006 U.S. Foreclosure Market Report, which shows that 120,334 properties nationwide entered some stage of foreclosure during the month, an increase of 4 percent from the previous month and an increase of 68 percent from November 2005. The report also shows a national foreclosure rate of one new foreclosure filing for every 961 U.S. households, the highest monthly foreclosure rate reported so far this year. Source.
Most Expensive Home Sales 2006. For the fourth consecutive year, Forbes.com has compiled a list of the year’s residential real estate deals. In the face of a general housing market slowdown, 2006 was a banner year for those that deal in high-end homes. The average price of a home on our list was $40 million, up more than 10% from 2005’s $36 million average, and more than 55% from the 2003 average. Source.
How Bad Will the 2007 Property Market Be? Economists predict that next year will be tough, but some metros will hold up nicely and the future may not be as gloomy as some fear. Interest rates will remain at historically low levels, homebuyers will see more opportunities, and, best of all, for those planning for the long term, 2009 could be primed for a comeback. Home prices will continue to fall in some markets, and the rate of price appreciation will slow in most places. Declines in homes sales, which directly influence price trends, will set the stage for another year of price decreases in 2008. Foreclosures will continue to increase. For those struggling to hold onto their homes, their net worth will shrink as these homes lose value. Long-term mortgage rates will rise. Housing starts will see double-digit depreciation, the sharpest decline since 1991, the worst year for housing starts on record. Grim as that might sound, there are some bright spots. Nationwide, home prices will be flat to up slightly in 2007, with many large markets seeing small increases. While new home sales will be down for the year, existing home sales will also be flat. And housing starts won't see as sharp a decline as they did in the early '90s or early '80s. Source.
~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com
No comments:
Post a Comment
Thank you for commenting!