2007 Housing Trends: Part One The Market
2007 Housing Trends: Part One The Market
First in a three part series Ill share some interesting insight from various publications experience and trends in our local Chicagoland residential real estate market.
Market timing. Many buyers and sellers on their own timelines in 2006 missed opportunities by not recognizing the ebb and flow of the real estate market. Spring is a high market with the most demand by the largest number of buyers. Summer is a good market fall is fair and winter is the remnant market with leftover buyers and sellers from the high good and fair markets.
Savvy buyers. With interest rates historically low and pentup demand from a soft year in 2006 the deals and lack of frenzy won’t last long. “Deferred demand” from 2006 could ignite a minifrenzy in some markets.
Firsttime home buyers. High home prices have driven many firsttime home buyers out of the market; but falling prices in many areas are bringing these buyers back.
Homes that are priced right. It isn’t the boom market of 2005 as evidenced by the sold comparables from the last six months. Forget cocktail party chitchat when all you heard was record prices and the shortest market times in U.S. real estate history.
Borrowing costs. Julie Haviv Reuters reported last week in USA Today that Borrowing costs on 30year fixedrate mortgages excluding fees averaged 5.98 down 0.15 percentage point from the previous week lowest since the week ended Oct. 7 2005 when it stood at the same level. Interest rates were also below yearago levels of 6.32.
Better situation for Buyers. In the same article she quoted Dean Maki chief US economist at Barclays Capital in New York. The decline in mortgage rates and the slowing in home price appreciation along with the buildup in inventories have led to a much better situation for home buyers through increased affordability as well as more inventory to choose from he said. Households are saying on surveys that home buying conditions have improved notably and that has coincided with the stabilization in home sales.
Baby Boomers. Keep your eye on the baby boomer group too as they begin to downsize creating another boost in home sales soon!
In parts two and three of this series well discuss whats in and whats out in todays real estate market.
About the writer: Kris Kombrink has been working in his familyowned real estate business since 1995. Specializing in Geneva St Charles and Batavia Illinois residential real estate his team stays on top of the latest trends while maintaining superior customer. Learn more about his team at http://www.kombrink.com or email kriskombrink.com
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