Existing-home sales are expected to rise gradually in 2007 from current levels, with annual totals slightly lower than 2006, while new-home sales will continue to slide, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORSÂ®.
David Lereah, NARâ€™s chief economist, says market conditions will vary around the country next year.
â€œRoughly three-quarters of the country will experience a sluggish expansion in 2007, while other areas should continue to contract for at least part of the year,â€ he says. â€œMost of the correction in home prices is behind us, but general gains in value next year will be modest by historical standards.â€
For Buyers, a Window of Opportunity
â€œBuyers, especially first-time buyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity,â€ he adds. â€œThese conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced.â€
Existing-home sales for 2006, finishing the third-best year on record, are projected at 6.47 million, a decline of 8.6 percent from 2005. For 2007, sales expected to rise steadily to an annual total of 6.40 million, which would be 1 percent lower than this yearâ€™s total.
â€œBy the fourth quarter of 2007, existing-home sales will be 4.6 percent higher than the current quarter,â€ Lereah says.
reprinted from: Daily Real Estate News
Categories: Buying, Selling, Market Outlook, First Time Buyers, Bennington VT