What’s in Store for 2008
July 11, 2007
Everyone is wondering what’s in store for real estate this year. Although there are many conflicting opinions, the overall picture is not as dire as some report. Markets in different parts of the country vary greatly. Although some will be down this year, there are many areas that expect continuing growth.
FHA loan applications have been rising significantly and HUD’s endorsement of FHA mortgage loans have risen 58% while refinances have risen 23%. This means that first-time homebuyers (the backbone of the real estate market) will be able to enter the market using a safer, lower interest rate product than the riskier subprime loan.
With the dollar’s decrease in value, buyers from foreign countries (especially Mexico, Britain, and Canada) will increase according to the National Association of REALTORS®. And as more baby boomers move into retirement age, the second home market should remain healthy this year.
Consumers will need to readjust to more modest growth in the market. Gone are the days of “get-rich-quick” house flipping schemes. But in spite of the overall slowdown, homeownership still remains a secure and valuable long-term investment.
