With a new year approaching the Real Estate Market place faces new challenges and changes. Discover a personal interpretation of the upcoming years Real Estate market.
In many areas across North America we have seen significant changes in the Real Estate market place over the course of this year. With a New Year rapidly approaching we can look forward to another eventful year in the Real Estate market place.
Interest rates in Canada look to be coming down in the first quarter of 2007 and 5 year fixed rates appear to be hovering around 5%. In the U.S. rates appear to be around 5.5% to 6%. With the continuation of low mortgage rates we should see increase growth in residential resale properties throughout next year.
However buyers have cooled to the market place and listing activity will outpace buyer activity in most areas. This will mean less dramatic price increase than we have seen in the last few years. Be prepared if you are considering a sale to wait longer and you will likely receive less than full asking price in most instances.
Many lenders are offering longer amortization periods and reduced down payment plans in order to get individuals in the home they want on an affordable payment schedule. This will assist to combat a continued Real Estate market slump and should assist with the stabilization of current U.S. and Canadian markets.
The overall outlook for 2007 is growth in the residential resale marketplace. This will be assisted by low mortgage rates and longer amortization period to keep monthly payments manageable for the average homebuyer. Unfortunately this year will likely see longer sale times in most areas and possibly lower than traditional initial offers.
