Only 6 States Real Estate Still Appreciating

Home sales in the over-whelming majority of localThe national inventory of re-sale homes, condos
real estate markets have slowed throughout theand townhouses has hit historic levels and
US, according to the latest survey of Housingforeclosures in some areas of the country are
Predictor.com, an information driven website,already becoming common place, including Denver,
which provides real estate market forecasts in allColorado and Indianapolis, Indiana.
50 US States.Historically low interest rates kept in check by the
Some 86% of 350 US markets regularlyFederal Reserve Board provided a fast paced
surveyed have transformed into buyers markets.market in many areas of the country for as long
Many have turned into markets that haveas five years until the Fed rose interest rates for
become negotiable enough to be beneficial toborrowers 17 times.
purchasers after nearly five years of upwardNow faced with a worsening housing market
appreciation.nationally and the possibility of inflation, the Fed's
Only six states local real estate markets are stillpolicy makers have the task of balancing the
favorable for sellers, most of which are in thescales to keep inflation under control without
southeastern part of the nation. Only the lasttipping the cart to cause further economic
frontier of Alaska remains elsewhere as theproblems.
longest lasting last strong hold in the greatestNew lending guidelines have also been instituted in
nationwide real estate market appreciation in USmany cases to help stave off further loan fraud
history.on the heels of FBI reports that loan fraud is a
However, because of slower market dynamicsnational epidemic.
and upward mobility the Alaska real estateThe fraud is expected to hit $5-billion, according to
market is also still not only showing strong signsmany analysts. But compared to the massive
of appreciating, but should weather the on comingfraud that swept the housing market in the late
cyclical winter weather slowdown well through the1980's caused by the Savings and Loan Scandal
last part of 2006.the developments are mild in comparison. The
Louisiana, Mississippi, Alabama, Arkansas andS&L Crisis was estimated to cost every man,
Kentucky are the last strong holds with local realwoman and child in the US $10,000.
estate markets that are still appreciating. TheThe national real estate market has clearly shifted
south-east is growing at the fastest pace in USto a buyers market, where prices are falling in
history.many areas. Multiple listing service reports indicate
Lenders and real estate agents in Nashville,a national slowdown in sales volume. Real estate
Tennessee still report home sales at brisk levels.economists expect sales to improve as prices
Other markets scattered throughout the threelower, and look for the slow down to improve in
other southern states report equally compellingearly 2007.
sales figures.