Fighting The Price Wars: What You Can Expect From The Housing Market In 2007

It seemed that with real estate becoming, well, more “real”, the worst for buyers was over. But, for industry professionals the worst was just about to begin. But, according to industry experts, it now appears that their worst fears are coming to an end. In fact, many are expecting the price of housing to start “slowly” creeping up. In fact, they expect them to grow at an annual rate of 6.29 within the first quarter of the New Year (2007). But, they note that new-home sales won’t recover until the fourth quarter of ’07.

A decline in mortgage rates have sparked hopes that the housing market would make a comeback and give a boost to the U.S. economy after a significant slump for most of 2006.

They note that auxiliary purchases including furniture total 23 percent of the gross domestic product. But, they add that that 2007 will only be the beginning of recovery and that the spring selling season will be vital in more fully understanding and predicting exactly what will happen and when.

According to industry experts that “hot” season for selling is between March and June. And, this year’s median home price is expected to experience a gain of 1 percent since 2005.