West Chester, PA (PRWEB) January 11, 2007
Shoprate.com is pleased to announce their home sale predictions for 2007. Shoprate.com has predicted that the biggest declines are behind us. There are still some declines to go, but the worst is over. Although key housing market benchmarks have stabilized in recent months in response to lower mortgage rates and warmer-than-normal temperatures, it is anticipated that sales will fall further in 2007.
It has been estimated that there will be a seven to eight percent drop in sales, which is not nearly as extensive as last year. Shoprate.com can find the best rates in your area from an immense list of lenders, and by keeping up with the vicissitudes of the real estate market, they are able to ensure the best service for all their clients.
Shoprate.com has predicted that when all the numbers are in, new homes sales will be down 17.2 percent for 2006 and existing homes will slip by 8 percent, to 1.06 million and 6.51 million, respectively. For 2007, new home sales will dip 7.1, to 999,000, while existing home transactions will fall another 8 percent, to 5.98 million. If these conjectures are correct, sales this year will be at their lowest level since 2002, while the two-year decline would be the largest since the 1989-'91 downturn.
The majority of the decline in investment activity should be behind us and prices should begin to turn around. However, for the year as a whole, prices will be down 1-2 percent on a national basis. National home price appreciation is likely to modestly negative in 2007. However, because all real estate is local, some markets will feel the pain much more extensively than others will.
If the average price of houses shows a lower figure for this year than last, it will be the first time in history that the national average will have decreased. The markets that will be in for the toughest sledding are those, which showed the sharpest gains. However, the declines will not be as great as the increases, so prices on average will continue to increase.
Overall, 2007 should be a strong year for housing; however, it will be far from a record year. Additionally, the next several years should see slower, more sustainable growth. Due to the drop in sales and sharp slowdown in price gains, some companies are calling for an 11.2 percent decline in purchase money originations, on top of the estimated 3.1 percent drop in 2006. Refinancing, on the other hand, will be little changed, as borrowers continue to turn in their adjustable mortgages for the fixed-rate variety at a stepped up pace.
Shoprate.com is the combination of a knowledgeable mortgage marketing advertising firm, a cutting edge web design team, and a staff with over 20+ years in the mortgage industry. Shoprate.com was formed to give consumers an unique and effective alternative to the myriad of online mortgage services currently available in the marketplace.