Upward Trend in Home Sales!

Existing-Home Sales To Trend Upward in 2007!

Existing-home sales are expected to rise this year. With annual totals slightly lower than 2006, new-home sales will continues to slide, according to the latest forcast by the NATIONAL ASSOCIATION OF REALTORS.

"Market conditions will vary around the country next year," says David Lereah, NAR's chief economist. "Roughly three-quarters of the country will experience a sluggish expansion in 2007, while other areas should continue to contract for at least part of the year," he says. "Most of the correction in home prices is behind us, but general gains in value next year will be modest by historical standards."

"Buyers, especially first-time buyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity," he adds. "These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced."

Finishing as the third best year on record, existing-home sales for 2006 were projected at 6.47 million, which is a decline of 8.6% from 2005. For 2007, sales are expected to rise steadily to an annual total of 6.4 million.

"By the fourth quarter of 2007, existing-home sales will be 4.6% higher than the current quarter," Lereah says.

New-home sales are slowing. In 2006 they fell 17.7% to 1.06 million, which is the fourth highest total on record. They are expected to fall an additional 9.4% this year to 957,000. Much of the contraction in the new housing market results from cuts in builder construction to support pricing for current inventories. In addition, high construction costs in many areas are taking a bite out of potential profits.

Total new-housing starts for 2006 dropped 12.3% to 1.82 million units. It is expected to decline 15.1% to 1.54 million this year.

The national median price for existing homes in 2006 was $222,600. It is expected to rise another 1% in 2007 to $224,700.

The median new-home price should rise by 0.8% this year to $241,700.

"Keep in mind that overall home prices were still appreciating at double digit rates in the first quarter of 2006. Prices in this buyer's market are temporarily below what they were a year ago when we were in a strong seller's market," Lereah says. "This correction is one of the factors drawing buyers into the current market, but most sellers are still seeing very healthy long-term gains."


About Wendy and Elliot Koolik: Wendy and Elliot Koolik are recognized leaders in the Boca Raton luxury and country club real estate communities. While they are active in all of Palm Beach County, they focus on Delray Beach, Boca Raton and Highland Beach. Wendy and Elliot Koolik have sold more than $350 million dollars in real estate by offering their clients a unique marketing plan for their home and an unparalleled level of customer service.

Wendy and Elliot are part of Koolik Group Realty, a family-owned and operated real estate company serving buyers and sellers since 1990. The real estate firm is known for its responsiveness to clients, knowledge of the neighborhoods they specialize in and, above all, for its boundless passion for the real estate business.

For more information, contact Wendy and Elliot by phone at 561.393.9997 x113, online at www.ElliotKoolik.com , by e-mail at EKoolik@Koolik.com or visit their blog at www.bocaratonluxuryrealestate.blogspot.com