tag:blogger.com,1999:blog-9968873.post-1170023762289610282007-01-28T14:23:00.000-08:002007-01-28T14:36:02.703-08:00<span style="font-size:85%;">It is good to be able to find some positive information on real estate in general. </span><span style="font-size:85%;">David Lereah, NAR Chief Economist in a Real Estate Insights article said. "We begin the New Year with a hint of optimism. The glass was half empty in 2006 – home sales fell throughout the year. But the glass looks to be half full in 2007. While property speculation has ceased, signs of a return to home buying have surfaced and inventory levels have topped out. REALTORS® and lenders alike are encouraged, but guarded, about 2007. </span><br /><span style="font-size:85%;"></span><br /><span style="font-size:85%;">Last year was a year of contraction, a correction that was sorely needed after five years of a booming housing market expansion. Home prices were inflated and property investors (and speculators) were everywhere at the end of 2005. That set the stage for 2006 to spiral downward. Home buyers stayed on the sidelines because they could not afford the lofty-priced homes in the boom-inflicted regions. Some households also postponed buying because they believed prices would eventually drop, making them better off buying later rather than now. Property speculators fled, dumping inventories. Meanwhile, homeowners looking to sell sat stubbornly tied to their listing prices. Let’s be clear, though. The sky never did actually fall in 2006— or, to use that phrase that the media love, there were no “bubbles” bursting. But air did come out of some inflated balloons. According to our National Association of REALTORS® latest estimates for last year, existing home sales were down 8.2 percent from a year earlier. Similarly, new home sales were down 17.4 percent and housing starts were down 12.5 percent. Our nation’s housing sector suffered a contraction, inhibiting overall GDP growth.</span><br /><span style="font-size:85%;"></span><br /><span style="font-size:85%;">Looking back, 2006 was a year of contraction. But looking forward, 2007 will represent a year of stability. Cheers to the New Year!</span><br /><span style="font-size:85%;"></span><br /><span style="font-size:85%;">You know, I agree with him. <strong>Cheers to the New Year</strong>!</span><br /><span style="font-size:85%;"></span><br /><span style="font-size:85%;"></span>Connie Webbhttp://www.blogger.com/profile/08200882854725633767noreply@blogger.com