As real estate professionals, we often have access to data that is not easily accessed by the general public. The numbers are out there, but they can be difficult to retrieve. So, when we get good news, we want to share it with you as soon as we can. The National Association of Realtors (NAR) is a large and respected organization. They employ top experts in their fields to gather and analyze the figures necessary to produce market statistics and forecasts. We at the state and local level know from experience that the NAR’s forecasts are well worth noting. Here’s what they have to say:
According to the NAR, total existing-home sales, including single-family and condo, were at the third-highest pace on record in the fourth quarter of 2005. In addition, twenty-four states showed increases in sales activity over the same period in 2004.This year, home sales are expected to stay below the peak levels in 2005, but willremain historically strong.
David Lereah, NAR’s chief economist says, “Sometimes people lose sight of the fact that real estate is cyclical. Even so, sales will continue at a historically high pace with modestly higher interest rates as the year progresses, and 2006 is forecast to be the third strongest year on record.” That’s good news indeed! We’ve had to listen to a lot of naysayers over the past several months, with their dire predictions of bursting bubbles and plummeting prices. Most of us expected a leveling off period and then a dip, but many of us are surprised and delighted to learn of the very strong year ahead of us.
Even if you have no plans to move, we still think it’s important for you to know the worth of your investment (your home) and the state of the market in general. The prediction about 2006 interest rates is good information for everyone, selling or buying or not. It lets us all know that we shouldn’t expect any steep hikes this year. Having this data will make it easier for you to plan ahead, no matter what you’re doing about your home. If nothing else, we feel it is good information to pass along to all of our friends and neighbors.