Prices to decline through ’07
It’s a guessing game when it comes to the current real estate market, but new data suggests it the market can drop lower. Now, experts are warning that prices will probably continue to decline through most of 2007. Since 1968, the NAR has bee compiling price data. Yesterday, they noted the biggest drop in home prices since 1968. The NAR stated that the median price for home sales completed in September was $220,000, down 2.2% from a year earlier.
Housing prices still remain well above the levels of five years ago, despite the recent drop-off. In fact, in a few locations such as Seattle, Houston, Charlotte and Raleigh-Durham, they continue to rise. These, however, are the exception and not the general rule. A few within the industry believe that prices will drop more than 10% in places like Sacramento, San Diego, Las Vegas, Reno, Phoenix and parts of northern Virginia and Florida.
Many homeowners who do not need to sell their homes are choosing to pull their homes off the market instead of cutting prices even further or offering incentives. What impact, if any, this will have on the market remains to be seen.