Not-so-great expectations

BusinessWeek.com and MSN’s article, “How bad will the 2007 housing market be?” takes a look at the year ahead for real estate. BusinessWeek polled economists at leading real estate research firms to find out their thoughts on 2007. In a nutshell, the consensus is:

  • Home prices will continue to fall in some markets, and the rate of price appreciation will slow in most places.
  • Declines in homes sales, which directly influence price trends, will set the stage for another year of price decreases in 2008.
  • Foreclosures will continue to increase.
  • For those struggling to hold onto their homes, their net worth will shrink as homes lose value.
  • Long-term mortgage rates will rise.
  • The article also provides a chart of several metro areas and the projected change in median home prices for 2007. To read, click here.

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