Gradual Rise Projected for Orange County Home Sales!
Before I get into the specific data, I wish to share some personal observations. Buyers are once again actively getting into the market and homes are beginning to sell. I am working with more buyers and showing more property this month than I did in the months from June to December of 2006. In fact one Buyer wanted to make an offer on a property, which we found out sold the previous evening. The market is once again becoming more competitive. Listings are still slow to sell, because of the built-up inventory. Thus sellers still have to be patient since they will stay on the market for a greater time. As always the sale of listings depends on the homes location, condition, and how agressively they are priced, as well as how well they are marketed. More and more buyers are using the internet, so listing agents need to take advantage of the marketing exposure that many of the internet sites offer.
After bottoming in the fourth quarter of 2006, existing-home sales are forecast to gradually rise through 2007 and into 2008, according to the latest forecast by the National Association of Realtors®.
NAR's chief economist, said annual totals for existing-home sales will be fairly comparable between 2006 and 2007. "We have to keep in mind that we were still in boom conditions during the first quarter of 2006 with a high sales volume and double-digit price appreciation," he said. "We're starting 2007 from a relatively low point, so even with a gradual improvement in sales it'll be pretty much of a wash in terms of annual totals. The good news is that the steady improvement in sales will support price appreciation moving forward."
Existing-home sales for 2006 are expected to come in at 6.50 million, the third highest on record, with a total of 6.42 million seen in 2007.
The 30-year fixed-rate mortgage will probably rise to 6.7 percent by the fourth quarter of 2007. Last week, Freddie Mac reported the 30-year fixed rate at 6.18 percent which is far below earlier consensus forecasts. The current interest rate environment and housing inventory levels present a window of opportunity for potential buyers.
The median existing-home price for all of 2006 is expected to rise 1.1 percent, and then gain 1.5 percent this year.
With all the wild projections by academics, Wall Street analysts and others in the media, it appears that much of the housing sector is experiencing a soft landing, Despite the doomsayers, household wealth will not evaporate and the economy will not go into a recession. If you're in it for the long haul, housing is a sound investment.
The unemployment rate is likely to average 4.8 percent this year, following a rate of 4.6 percent in 2006. Inflation, as measured by the Consumer Price Index, is expected to be 2.2 percent 2007, down from 3.2 percent last year, while growth in the U.S. gross domestic product is seen at 2.5 percent in 2007, compared with 3.3 percent last year. Inflation-adjusted disposable personal income should grow 3.4 percent this year, following a rise of 2.7 percent in 2006.
The Orange County real estate market has recently experienced rising home inventories and stabilizing prices. In this market, home buyers have increased negotiating power, but may be unsure of how to structure the best deal - they need a professional to help guide them through the transaction.
As the real estate market in Orange County became more balanced between buyers and sellers, home prices have stabilized. However, most homeowners can still realize a very good return on their investment. Consumers who bought their homes six years ago have seen more than 50 percent appreciation in their home's value during that time.
Every market's different, call a Realtor today!
These are my personal observations and views and do not represent the views of ZipRealty,Inc.
To discuss this further or for more information contact Mike Stankewich at (714) 697-0038 or toll free at 1-800-225-5947 ext. 8660 or e-mail me at Mike.Stankewich@ZipRealty.com.Visit our blog at http://blog.mikestankewich.com/ to see related articles, archives, and to post your comments to this market conditions report.
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ZipRealty is a national full service brokerage with offices in the major U.S. metro areas. ZipRealty offers sellers full services, enhanced Internet marketing, and below market commissions, while maintaining the highest customer satisfaction rating in the real estate industry.
Buyers who use ZipRealty for their purchase receive a rebate of 20% of ZipRealty's commission, while receiving personalized service and complete client representation throughout the buying process.
Contact Mike Stankewich for your real estate needs. Visit http://www.MikeStankewich.com to search for all the properties on the MLS, to get pre-approved with E-LOAN, and for other valuable real estate and community information.
After bottoming in the fourth quarter of 2006, existing-home sales are forecast to gradually rise through 2007 and into 2008, according to the latest forecast by the National Association of Realtors®.
NAR's chief economist, said annual totals for existing-home sales will be fairly comparable between 2006 and 2007. "We have to keep in mind that we were still in boom conditions during the first quarter of 2006 with a high sales volume and double-digit price appreciation," he said. "We're starting 2007 from a relatively low point, so even with a gradual improvement in sales it'll be pretty much of a wash in terms of annual totals. The good news is that the steady improvement in sales will support price appreciation moving forward."
Existing-home sales for 2006 are expected to come in at 6.50 million, the third highest on record, with a total of 6.42 million seen in 2007.
The 30-year fixed-rate mortgage will probably rise to 6.7 percent by the fourth quarter of 2007. Last week, Freddie Mac reported the 30-year fixed rate at 6.18 percent which is far below earlier consensus forecasts. The current interest rate environment and housing inventory levels present a window of opportunity for potential buyers.
The median existing-home price for all of 2006 is expected to rise 1.1 percent, and then gain 1.5 percent this year.
With all the wild projections by academics, Wall Street analysts and others in the media, it appears that much of the housing sector is experiencing a soft landing, Despite the doomsayers, household wealth will not evaporate and the economy will not go into a recession. If you're in it for the long haul, housing is a sound investment.
The unemployment rate is likely to average 4.8 percent this year, following a rate of 4.6 percent in 2006. Inflation, as measured by the Consumer Price Index, is expected to be 2.2 percent 2007, down from 3.2 percent last year, while growth in the U.S. gross domestic product is seen at 2.5 percent in 2007, compared with 3.3 percent last year. Inflation-adjusted disposable personal income should grow 3.4 percent this year, following a rise of 2.7 percent in 2006.
The Orange County real estate market has recently experienced rising home inventories and stabilizing prices. In this market, home buyers have increased negotiating power, but may be unsure of how to structure the best deal - they need a professional to help guide them through the transaction.
As the real estate market in Orange County became more balanced between buyers and sellers, home prices have stabilized. However, most homeowners can still realize a very good return on their investment. Consumers who bought their homes six years ago have seen more than 50 percent appreciation in their home's value during that time.
Every market's different, call a Realtor today!
These are my personal observations and views and do not represent the views of ZipRealty,Inc.
To discuss this further or for more information contact Mike Stankewich at (714) 697-0038 or toll free at 1-800-225-5947 ext. 8660 or e-mail me at Mike.Stankewich@ZipRealty.com.Visit our blog at http://blog.mikestankewich.com/ to see related articles, archives, and to post your comments to this market conditions report.
ZipRealty is a national full service brokerage with offices in the major U.S. metro areas. ZipRealty offers sellers full services, enhanced Internet marketing, and below market commissions, while maintaining the highest customer satisfaction rating in the real estate industry.
Buyers who use ZipRealty for their purchase receive a rebate of 20% of ZipRealty's commission, while receiving personalized service and complete client representation throughout the buying process.
Contact Mike Stankewich for your real estate needs. Visit http://www.MikeStankewich.com to search for all the properties on the MLS, to get pre-approved with E-LOAN, and for other valuable real estate and community information.
Labels: market conditions, orange county, real estate homes, Sunset Beach
posted by Mike Stankewich at 11:34 AM
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