More Internet, higher rents, rising sales
December 29, 2006
BY CELESTE BUSK Real Estate Reporter
The findings:
The CAA sees rents in Chicago and the surrounding suburbs continuing to move higher by 5 percent to 6 percent in early 2007.
Ya, sure, with all the condos on the market that cannot sell, and all the ones still being built.
We should start the early part of the year breaking below 6 percent, which will help spur home sales along with refinance activity. By June, I think we will see rates around 5.5 percent.
"With many buyers choosing to sit on the sidelines in 2006, they won't be able to resist the lower interest rate environment along with lower heating and gasoline prices," he said. "Not to mention the fact that people continue to outgrow their current home and want larger ones; get divorced and need a new residence; become empty nesters and want smaller digs that don't require maintenance.
Right, right. And the Greedy Sellers will not increase their prices, right? The problem is not the interest rates. It's the monthly note. Budgets are stretched already. So it's a smooth move on the part of the IAMB. Lobby the Fed to lower the rate and it might help convince the buyers that they can do it. However, the real problem is the Greedy Sellers. God bless them, they are trying to make their first million on the roof of their raised ranch, but they have pushed it too far.
"The current buyers' market won't last much longer. By July, we should see inventories of homes for sale start to drop along with marketing times. In 2007, we should see normal appreciation of 6 percent throughout the Chicago metro area
LIVE IN FEAR!!!! If you don't get in now, you will NEVER get in! Housing prices ONLY go up! Inventories dropping? Not anytime soon. There are many major housing projects no where near done yet. Many more condos to come one the market 2007-09.
Rizzo said. "We'll continue to see historically low interest rates and homes selling closer to market price. The law of supply and demand, more than anything, is going to be the driving force that keeps the market relatively 'flat'" throughout the year. Until surplus is absorbed, competition will be fierce among builders to clear their inventory, forcing homeowners to set realistic prices when it comes time for them to sell."
We can only hope!
The 30-year fixed-rate mortgage is forecast to gradually increase to 6.7 percent by the fourth quarter of 2007, said David Lereah, NAR's chief economist.
"Buyers, especially first-time buyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity. These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced," Lereah said.
Fear mongering at it's best.
8 comments:
Followed the link from HP over. Have to say I agree with this post. Good luck with the blog.
Yeah, me, too, from HP.
I lived in Marina City from 1993-2000, didn't need/own a car, walked two blocks to work, great high-rise urban living.
Now I live in Seattle, and I see the hucksters pimping $500/sq ft condos in Belltown as a superchic "lifestyle". A 2nd-tier city with awful mass-transit. Absurd.
Over Labor Day, I saw the condo madness in the Chicago Loop. 55 E Monroe! 55 E Monroe!
We're all doomed.
Thanks guys, welcome back any time.
see hp stopped taking anons anons,making me wonder of its validity, without trolls and morons, it could just be another shill
saw that 87,000 3bd 2bth, 2cg with pool from 2002 trying to be sold at 425,000 today, still sorry i invested in gov bills and notes, and bonds and bank deposits of cash and lost purchase power, that will not break even in 10 years at 15% interest yeilds, moral? dont invest in government,
Nice site, and I like being able to post without joining. I am from S. Florida. Even though the real estate market is very slow, prices are still high. I think the realtors are pushing hard to keep prices up and wait out the slump. I think realtors and sellers sincerely believe that if the rates are low enough and the monthly payment is low (interest only), folks will spend any amount no matter how stupid it is. They could be right.
Anonymous said...
Nice site, and I like being able to post without joining. I am from S. Florida. Even though the real estate market is very slow, prices are still high. I think the realtors are pushing hard to keep prices up and wait out the slump.
***The sellers, yes. The realtors, no. They are stretched out. They need income and food. The realtors are probably uspet with their clients still trying to ask peek $$.
I think realtors and sellers sincerely believe that if the rates are low enough and the monthly payment is low (interest only), folks will spend any amount no matter how stupid it is. They could be right.
*** Some people, sure. There are plenty colleagues of mine, that have no clue about current activity in the market. But WHY WHY WHY would someone get a zero int, or opt arm nowadays??!!
coulda picked a name like enslaved in the land of the free wtf,jan5/06, to big the politician?fix the rails, but not at neomafiaoso 6 million a mile, at 6 million a mile, rebuild us steel, not 20,000 recycled tin
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