Historic Home Blog

There has been alot of good news for home buyers recently, but now we are beginning to get some really good news for them (& home sellers). With the real estate market now on the road to recovery, there is no better time than now to buy a house.

Home prices are expected to recover in 2008 with existing home prices picking up late this year and new-home sales rising early next year, according to the latest forecast by the National Association of Realtors. Both new and existing home prices are now expected to show a less than one percent gain in the second quater of next year, according to the latest forcast.

Lawrence Yun, NAR senior economist, said a good buyer’s market has evolved. “Buyers now have an overwhelming advantage given the wide selection of homes available in many markets,” he said. “But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state.”

Existing-home sales are expected to total 6.11 million this year and 6.37 million in 2008, down from 6.48 million last. New-home sales are projected at 865,000 in 2007 and 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multi-family units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.80 million last year.

Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800. The median new-home price should rise 2.2 percent to $245,400 next year following a 2.6 percent drop in 2007 to 240,100.

What does all this mean to historic home buyers & historic home sellers…
This is a very good time for a historic home seller to make his home attractive (price & condition) to a buyer and a buyer still has time to secure his dream home before prices and, possibly, interest rates go up. NAR has been very credible and was one of the first to forecast the extent of the real estate slowdown more than a year and half ago. This report is welcome news, indeed, and a balanced market benefits everyone.