From our Realty Times Newsletter:
Home sales appear to be bottoming out with lower home prices attracting buyers in many areas of the country, according to the National Association of Realtors.
David Lereah, NAR’s chief economist, said the housing market is showing signs of life and that sales may be leveling out. “Many potential home buyers who have been taking a wait-and-see attitude or taking their time and being methodical in the search process are being enticed by lower home prices,” he said. “Given a positive economic backdrop of lower mortgage interest rates and job creation, we expect sales activity to pick up early next year.”
Existing-home sales are forecast to be fairly stable in the fourth quarter and sales for all of 2006 are expected to drop 8.9 percent to 6.45 million — still the third strongest year after consecutive records in 2004 and 2005.
NAR President Thomas M. Stevens, said this presents a unique opportunity for buyers. “The supply of homes on the market is the highest we’ve seen in over 13 years, and interest rates are experiencing an unexpected decline,” said Stevens.
While this changing market is a great time to buy, it’s become increasing important for parties on both sides of the real estate transaction process to have professional representation.