2007 a year of tranistions in real estate market
Mar 8, 2007
Author: Family Realty, LLC

Most experts in the real estate industry are predicting 2007 will be a transitional year for the nation. Although they do not agree on what the transition will be like, most do agree that it will not be a boom year for appreciation like in the past five years. However, local markets should continue to see strong growth in the Norris Lake areas.

Bizjournals.com recently conducted a study of the fastest growing retirement communities by looking at the past five years’ growth in nearly 1000 markets. LaFollette, Tennessee was ranked 64th in the nation. A strong tourism market has led to this growth of the area as an emerging retirement community. This growth, along with the vacation property growth, should continue to have some affect on the other local markets.

Real estate analysts are predicting that home prices will drop slightly in 2007, but sales may stabilize to historically normal levels. This may mean that sellers will have to be more realistic and buyers should be warned that there is no huge decline in prices projected, even by the most objective economists.

Ed Leamer, Director of the UCLA Anderson Forecast predicts that new homes will fare better in 2007 with more competitive marketing and pricing. Nationwide, he predicts appreciation rates to be around 2 to 3 percent for the next two to five years.

The problem with home sellers is that many aren't seriously selling but testing the market to see whether they will get their ideal price, he said. There's no immediate need to sell, so they won't. He said buyers should also stop thinking that the longer they wait, the better the deal. "Prices will come down a little, but they will come down so slowly the strategy of waiting and waiting will not work," Leamer said, adding that in the past, prices dropped 25 percent -- but over five years. Leamer suggests buyers to lock in their rate while they are still historically low and stop reading the real estate business pages waiting for the perfect moment.

Experts say that sellers of older homes may have to consider concessions to the buyers in order to make timely sales. Buyers are becoming less emotional and more business-like in the purchases and are more discerning in what is a good deal and what is not.

With stabilizing markets and good interest rates, buyers have many opportunities. And as always, when making a home purchase, seek out a professional Realtor® to assist you with this important transaction.