If you read the buzz from the National Association of Realtors (NAR), and the California Association of Realtors (CAR) and their economists, you will hear that the market will start moving upwards come the Spring. I am a little less sanguine about our local market. Most Industry analysis seems to take the position of the listing agent and the seller, and they are telling the seller's that come mid-year, there will be a stiffening of the market, and perhaps even an upward swing in prices.
I feel that sellers will be lucky if things just remain even for the rest of the year, and they should really look for a 2% to 5% decrease in value, with the hopes for a leveling in the market in 2008. Most economists point towards a rise in interest rates to 6.5% to 6.8% for a 30 year fixed loan by the end of the year.
I know I keep harping on this, but 2007 is going to be a great year for buyers.
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