Our market is adjusting, but I see it as a positive step. Buyers have more time to make good decisions and more inventory to consider. Sellers who price their home realistically for today will sell more quickly than those sellers still clinging to yesterday's market prices. The forecast for our area is positive, that is, that prices will make a slight adjustment, but mainly the adjustment will be seen in the fact that appreciation will return to sustainable levels of advancement.
California Association of Realtors President, Vince Malta, recently summed it up:
“Although the 2007 sales decline is not expected to be as steep as what we experienced this year, the psychology of the market -- matching the differing expectations of sellers and buyers -- will continue to be a factor as REALTORS® help consumers navigate their way through a changing market. While we’re projecting a modest decline in the median price of a home, over the long term, residential real estate in California has been and will continue to be a solid investment. Since 1968, the long-term average price appreciation is 9.1 percent.”
Read the entire 2007 Housing Forecast by Chief C.A.R. Economist Leslie Appleton Young
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