Sunday, November 18, 2007

The Latest from the National Association of Realtors

'Roulette Economy' of 2007 Is Almost Over

2007 has been a year of challenge; 2008 will be a year of opportunity for serious buyers and for REALTORS®,” NAR Chief Economist Lawrence Yun told a packed house at the NAR Conference Tuesday. What Yun characterized as “the roulette economy” of 2007, fueled by subprime greed and then buyers’ fear, is almost over. With a favorable economy, pent-up home demand, and Wall Street “fessing up to its losses and cleaning up its underwriting,” 2008 will be a healthy market for serious buyers, he said.Home prices nationally have declined by some 1.5 percent in 2007, which is "no big deal" after years of rapid appreciation, said Yun. In addition, he noted, there are still many markets such as Utah, North Carolina, and Tennessee that are appreciating and may even be undervalued.

Remind Clients That Markets Are Local

“REALTORS® have to educate their clients that all markets are local and that problems in a few areas aren’t meaningful," he said. "A national picture of the real estate market is just about as valuable as giving a national high temperature for the day." Yun also noted that while the credit crunch slowed deals in 2007, much of the pain is being felt in the subprime area, while other mortgage sectors are stabilizing. Subprime constitutes only about 10 percent of mortgage loans, but accounts for some 40 percent of current foreclosures. Going forward, proposed federal legislation that would increase FHA loan limits should help moderate-income buyers, said Yun. Yun expects GDP growth of 2.8 percent and job growth of 1.1 percent in 2008. Inflation should also remain under 3 percent, and interest rates should rise only slightly, he predicts. “For buyers who are into home ownership for the long term, housing still remains the best investment,” he concluded.

Tuesday, November 6, 2007

Architectural Heritage Center

I am a proud member of the Architectural Heritage Center here in Portland. They have amazing exhibits featuring salvaged historic old house parts and sponser many great events. If you are at all interested in Portlands' historic or architecturally significant homes check out their newsletter and become a memeber!

http://www.visitahc.org/newsletter/vol15no4.pdf

And if you have an older home to buy or sell remember to ask an expert! Visit the AHC website and call ME!