2007 Market predictions

**Tsmith** · 06-28-2007, 09:11 AM

I work for CurrentForeclosuresdotcom and we have been noticing a huge increase in the number of foreclosures on the market in the past year. I have been reading a few articles about when the market will turn around, and everybody seems to have a different opinion (I personally believe the market won't hit bottom until next year when ARM interest rates rise)....what are everybody's thoughts?

**Codythebest** · 06-28-2007, 07:49 PM

I agree. Prices are decreasing regurarly and will keep going down for the next 12 months at least. This is where we should buy...
It is already a strong buyer's market but people still hold. Not for long...

**Cedar City Utah Realtor** · 07-08-2007, 07:22 PM

I think the market will be flat this year. Usually the market moves in V's and U's. Im not as worried about the forclosure stuff as others.

**rama1** · 07-09-2007, 04:58 AM

Our office is also in foreclosures mostly now because of the market. However, I sill don't see any signs of recovery for a year at least.

**La Jolla Real Estate** · 07-11-2007, 08:20 AM

Sunny San Diego: We are seeing modest decreases in parts of the county with more significant decreases where defaults are at their highest. Of course, entry level housing is hit the hardest. High end and coastal communities have buoyed the County's median home price - it has been increasing (after a couple of slips last year) until a 3% drop this month.

My prediction: County-wide 2007 continues flat into 2008 where we see it pick up again - slowly.

**Alpharetta** · 07-16-2007, 03:27 AM

My experience shows that the majority of the slowdown is due in large part to the dissolution of the subprime market. In the past few years all you needed was a heartbeat to buy a home. With these buyers gone, there is definitely a lower demand from buyers.

**Rich_in_CT** · 07-17-2007, 01:03 PM

Foreclosures are going up by the double digits everywhere this year and there are far more ARMs that will adjust next year compared to this year (I've heard as many as 3 times as many). 2007 looks increasingly bleak and from what I see so far 2008 looks WORSE. The report by the NAR that 2008 will bring us back on track seems like a hope rather than reality.

**FlatFeeKing** · 07-19-2007, 07:59 PM

short sales are a pain in the ***, but work great when they work!! I predict flat fees will continue to grow their part of the market

**petemfa** · 08-17-2007, 03:37 PM

Right now 2007, we have $200 billion in ARM mortgages re-adjusting for the first time. Next year 2008 will have $900 billion re-adjust for the first time. That's 4 1/2 times the number of problems we will potentially have compared to now.
As prices weaken, more and more people can not refi. to get out from these ARM's. Add to all of it, much tighter lending standards and higher down payment requirements and it all adds up to PAIN in 2008.

If you can be patient and watch what is going on around you, opportunites will present themselves that have not been around for YEARS.

Get ready to deals are coming!!!

**HomeSurfer** · 08-17-2007, 11:47 PM

First, real estate is local. What goes for Orange County and San Diego County in California isn't necessarily the same for Hardin County, Kentucky.

Second, it isn't slow "demand" that is killing the market. It is over-supply of inventory.

Simple test:

In your local sales area MLS, look at your sales pace for 2007. Then look back at the last year to have a similar sales pace. It will probably be 2001 or 2002. Compare the number of homes on the market for that year compared to right now. You'll probably find that current inventory is more than double the inventory than you had in a year with the same sales pace.

Suppy/Demand curve from Business 101.

Now go to HomeSurfer.com and post up your local sales conditions.