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IMPROVEMENT IN MORTGAGE MARKET BODES WELL FOR HOUSING IN 2008
WASHINGTON (October 10, 2007) – Conditions in the mortgage market are improving for consumers, which should help to release some pent-up demand in early 2008, according to the latest forecast by the National Association of RealtorsÒ.
Lawrence Yun, NAR senior economist, notes that widening credit availability will help turn around home sales. “Conforming loans are abundantly available at historically favorable mortgage rates. Pricing has steadily improved on jumbo mortgages since the August credit crunch, and FHA loans are replacing subprime mortgages,” he said.
Yun said it’s important to place the current housing market in perspective, and that 2007 will be the fifth highest year on record for existing-home sales. “Although sales are off from an unsustainable peak in 2005, there is a historically high level of home sales taking place this year – a lot of people are, in fact, buying homes,” he said. “One out of 16 American households is buying a home this year. The speculative excesses have been removed from the market and home sales are returning to fundamentally healthy levels, while prices remain near record highs, reflecting favorable mortgage rates and positive job gains.”
He emphasized all real estate is local with naturally large variations within a given area. “Markets like Austin, Salt Lake City and Raleigh have been outperforming recently and will continue to do well next year,” Yun said. “Other areas like Denver and Wichita will likely move up in the price growth rankings due to very positive local economic developments.”
Existing-home sales are expected to total 5.78 million in 2007 and then rise to 6.12 million next year, in contrast with 6.48 million in 2006. New-home sales are forecast at 804,000 this year and 752,000 in 2008, down from 1.05 million in 2006; a recovery for new homes will be delayed until next spring.
“A cutback in housing construction is a positive sign for the market because it will help lower inventory and firm up home prices,” Yun said. Housing starts, including multifamily units, are likely to total 1.37 million in 2007 and 1.24 million next year, down from 1.80 million in 2006.
I think we should neither do backflips nor be "Debby Downers". Remember that SNL character? :-)
The market in the Triangle has always been steady and restrained in terms of pricing. There's very little out there that I see to knock that path off track. A sign that the area is headed for appreciation is that people are coming to NC in droves. On the flip side, the supply continues to be there and the folks who are coming haven't all sold their homes where they were. One might say that the ying and the yang of the market find themselves fairly balanced once again. If I were a buyer now (which I am not), I certainly wouldn't hold out for a huge price drop across the board. If I were a seller (which I am not), I wouldn't sit around with dollar signs in my eyes hoping that folks from Jersey and Florida are going to make them rich one day. Lastly, if I were a realtor (which I am not), I would educate my clients about the actual performance of all the areas submarkets so that they can all make the best, most informed decisions when buying and selling.
Before we all do back flips for joy, look who wrote the article. Do you expect the National Association of Realtors to say anything else?
Since we are on the Raleigh/Triangle forum, the point of posting the article, no matter who it is from, is the fact that OUR market was specifically mentioned. All of the articles previously posted talking about the 'Doom and Gloom' did not mention our market. I think the intelligent people on this forum can make their own determinations about the state of our specific market.
Since we are on the Raleigh/Triangle forum, the point of posting the article, no matter who it is from, is the fact that OUR market was specifically mentioned. All of the articles previously posted talking about the 'Doom and Gloom' did not mention our market. I think the intelligent people on this forum can make their own determinations about the state of our specific market.
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I had already posted this article and got the same response that you are, coltank.
I say let the people that are sitting by WAITING for the house prices to go down, continue to sit.
Meanwhile, my house in North Raleigh will continue to appreciate.
There are people that enjoy being unhappy and passing along any type of negative information they can find. There are people that live in this area because we love it and have experienced it and are tired of having to EXPLAIN over and over that housing is LOCAL.
Vicki
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Coltank...
I'm not a misery but...
