The highs and lows of 2006 are expected to level out.
Home buyers and sellers receive good news as more experts are anticipating a leveling housing market for 2007. In addition to home sales and prices, it looks like interest rates may also be stabilizing. Freddie Mac released its weekly United States survey stating that 30-year mortgage rates have remained unchanged in more than a week. Other loans, such as the 15-year fixed-rate mortgage, only saw very slight increases.
In her recent MarketWatch article, Amy Hoak explains that the leveling out of the home market is primarily due to a “healthy correction”. In other words, the slow down we saw during much of 2006 was due to buyers continuing to wait to get the best home prices, even after a majority of investors, who many argue were somewhat responsible for the massive housing boom, tried to exit the market. This caused a slow down in overall home sales.
Will 2007 be a Buyers Market?
Sellers will see less monetary gain from home sales
Although a more stable housing market in 2007 is expected, some experts say that there are many months ahead before the housing market gets back to “normal”. Although home sale prices are expected to rise slightly, actual price gains on property will remain relatively smaller than most sellers would like.
According to National Association, median existing home prices are expected to rise 1.7 percent next year, while new home prices are expected to rise 1.3 percent.
For buyers and sellers alike, this means now is not the time to try to flip homes quickly to make a profit. Take your time, do your research and find a home that’s a good value and likely to resell well in the future. It’s also a good idea to start looking into getting approved for a mortgage now. Getting pre-approved helps you get more leverage in negotiating for the property you do want once you find it.
Courtesy of:
Mary Markis
Perl Mortgage
312.651.5357
Mary@MaryMarkis.com