2007 Residential Real Estate Forecast

In many ways 2006 was the non-year for realnon-seller's markets. Homes that are priced right
estate. The National Association of Realtors(R)and are in good condition which offer features and
reported that sales will be down in 2006 about 9finishes that buyers demand, will sell close to list
percent from 2005, a record setting year.Manyprice in moderate market times. Flat or negative
markets waited for spring market which wasappreciation.Florida, Arizona, California and
disappointing. Markets then believed buyers wouldWashington D.C., will have unstable markets. Until
re-group in summer,and buyers were a no-show.sellers get a reality-oriented wake-up call markets
Fall and last market hopes were dashed when fallin these locales will sputter and hiccup.Ten states
came and went, with plenty of traffic at openposted solid sales gains in the second quarter of
houses, but few contracts.Pent-up demand from2006 versus 2005. Reported the National
a lackluster 2006 should drive buyers back toAssociation of Realtors(R). The gains ranged from
market. But, these savvy buyers will be on thean impressive 48% in Alaska to a low of 5.3
lookout for realistic prices and seller give-backs.percent in Georgia. The other eight states included
Most buyers will tell you point-blank that theirArkansas, Texas, North and South Carolina,
income gains in the last five years have notVermont, Tennessee, New Mexico, and
matched rises in home home prices. Real estateWyoming.Residential real estate will return to being
markets won't bounce back until home sellersviewed as shelter and housing and trend away
realize as prices go up, the pool of buyers shrinksfrom being viewed as a speculative
proportionately. Buyers with a home to sell willinvestment.What about 2008? Stable, pre-frenzy
include a home-sale contingency, so sellers shouldmarket with appreciation at 1% annually.Mark
be prepared to accept one.Inventory levels willNash, is a residential real estate author, broker,
remain in the six to seven moth range. Listingcolumnist and writer based in Chicago. His fourth
leftover's from 2006, will roll into 2007. Thebook 1001 Tips for Buying and Selling a Home
leftovers are either un-realistic sellers whosereceived eighteen five star reviews on His latest
pricing is from the "froth years" or thier homesbook; Real Estate A-Z for Buying & Selling a
haven't been updated to keep up with the stiffHome will be published in December 2006. Mark
competition and time-starved buyers.Mortgagepublishes a free monthly ezine for real estate
rates will remain in the 5.5% to 7% range.professionals. Agent to Agent features ten articles
Historically low, but low rates by themselvesthat offer free reprints for agents, home buyers
haven't motivated buyers to write real estateand sellers through . Real estate news and book
contracts in 2006.Foreclosures will rise. Risky loansreviews, Celebrity Homestyles, Home selling and
such as Interest-Only, Option ARM's and 100%buying tips and advice, Joke-of-the-Month, Help
financing will tap out buyers whose used thesethis Agent, and agent marketing tips. Over 5000
"appreciation-oriented" mortgages.Prices will dropsubscribers in the U.S. & Canada.
4-10% before leveling off in the majority of