| Over the past months, we have all been | | | | sale were up by 5.1 percent for the same period |
| inundated with projections on the housing market | | | | but now have slowed drastically. With the average |
| bubble Will it burst? It is going to burst soon, be | | | | time to sell a new home being almost six months, |
| prepared! Sell Now! Buy Now! And the forecast | | | | builders are offering incentives to buyers, including |
| differs depending upon the television channel you | | | | helping with the closing costs, and are more willing |
| are listening to or the media article you are | | | | to lower prices in order to sell off their |
| reading. | | | | inventories. |
| According to James Cooper of BusinessWeek | | | | Condos and co-ops sales were off by 6.7 percent |
| magazine, the numbers point to a gradual | | | | during the first half of 2006. The number of such |
| slowdown of the market not a sudden crash, as | | | | homes for sale on the market has soared in the |
| many have predicted. In his July 10, 2006, article, | | | | past year, gutting the market and bringing down |
| Cooper cites how different indicators for the | | | | prices and sales. The number of unsold units are |
| housing market are up one week and down the | | | | up 73 percent. |
| next. Some homes for sale indicators decline, | | | | The good news is for existing homeowners with |
| while others rise. Though it is difficult to accurately | | | | homes for sale. This market is currently in good |
| project the future of the housing market for the | | | | shape with both sales and prices holding up better |
| remainder of 2006, he is optimistic in spite of all | | | | than the new homes for sale market. Such sales |
| the noise that changes the market outlook on a | | | | have declined in seven out of the past nine |
| daily basis. | | | | months, but median prices are up 8.2 percent |
| Compared to last years peak numbers, the | | | | over the same period in 2005. According to |
| housing market is in decline for both new and | | | | Cooper, homeowners are not as willing to lower |
| existing homes for sale and the growth rate of | | | | their prices as are builders, preferring to leave |
| prices continue to slow. Yet, the expected drop in | | | | their homes on the market in order to find |
| sales has not been as bad as predicted, and the | | | | buyers willing to meet their price. |
| market collapse forecast has not occurred. The | | | | The bad news for owners of homes for sale is |
| progressive slowdown is expected, however, to | | | | the number of existing homes currently being put |
| continue through the remainder of 2006. | | | | on the market. In May of 2006, the number of |
| The area of the homes for sale market that has | | | | existing homes for sale rose to 3.6 million, thats |
| been hit the hardest is the new single-family | | | | one million more than in May of 2005. This is sure |
| homes and existing condominiums and co-ops. | | | | to begin affecting the existing homes for sale |
| Existing single-family homes for sale have faired | | | | market. Additionally, the Federal Reserve is |
| the best with only a gradual decline in prices. | | | | expected to raise interest rates soon that will |
| New home sales have fallen off sharply in 2006 | | | | affect mortgage rates for buyers. Right now is |
| and have the most volatile market indicators that | | | | the best time to sell your home as buyers race |
| cause the chaotic forecasts. There have been | | | | to lock in current mortgage rates before the |
| some ups and downs since the first of this year; | | | | Federal Reserve takes action. |
| however, new home sales are down overall by | | | | The predicted housing bubble crash is not |
| 10.9 percent since the end of 2005. Currently, | | | | expected in the near future. Consumer confidence |
| builders have large inventories of new homes for | | | | is up by one point in June of 2006, according to |
| sale that are expected to create further declines | | | | the Conference Boards index on consumer |
| in both sales, prices and new construction starts | | | | confidence, weighing in at 105.7. With good buyer |
| for the future. | | | | confidence in the homes for sale market, a solid |
| In May of 2006, the number of new homes for | | | | economy, and good labor markets, owners with |
| sale was up nearly 24 percent from last year for | | | | homes for sale are still at a competitive |
| the same period. Median prices of new homes for | | | | advantage for now. |