Real Estate Forecast for 2007
"While increased inventory was a challenge in 2006, the last few months of the year showed signs of the market beginning to balance. I expect that trend to continue into 2007. With a more favorable market for sellers, home sales will likely keep pace with 2006.
Trends in home production are another positive sign for market balance in 2007. Home builders in 2006 realized that there were simply too many homes on the market and thus began to cut back on new builds.
Interest rates throughout 2006 stayed historically low. The Federal Reserve is likely to continue holding interest rates steady in the first two quarters of 2007.
The most encouraging economic indicator heading into 2007 is employment. Unemployment rates continue to be low and wages are up.
The overall home ownership trend will certainly be a boost to the local housing market in 2007. Home ownership has been rising and continues to rise, movement that is not likely to temper any time soon.
Corporate relocations have become more common than ever. In Indiana, corporate relocations and capital projects are sure to continue funneling a substantial percentage of the residential real estate business in 2007 and beyond."
Compiled by F.C. Tucker Company, Inc. and courtesy of the F.C. Tucker Company 2006 Annual Report.