Real Estate Trend for 2007
What Real Estate Trends Do We See For 2007?
What trends do we see for 2007? Inventory will continue to grow, but at a slower pace. Buyers will increase. People like to buy new homes, instead of redecorating and remodeling, because they are not patient. Many buyers cannot visualize and are not creative; therefore, the house they buy must perfectly fit their concept of a home. Unfortunately, in today’s market there is not a perfect home. Buyers like new because they can add their flavor to the finished product without adding cost. If the home needs to be redecorated or updated, buyers want a discount.
The hot sales market in the past two months has been between $100,000 to $300,000. Once we cross the $300,000 market, sales decline with the higher price ranges taking the hardest hit. The major contributor to this decline in the higher price range is that this buyer is moving up in size or downsizing, could be relocating or moving locally….they know what they want and are willing to wait. Nationally, the statistics point out that a buyer searches on the web for nine months prior to contacting a Realtor®. Two months prior to moving, this buyer furnishes the Realtor® a list of nine properties to see and then makes a decision.
Out of the 886 homes presently on the market in the area from Spanish Fort to Point Clear, 276 are new homes. Out of the 167 sold and closed in this same area from October 1, 2006 to December 6, 2006, there were 61 new homes. Resales are still hurt by the number of new homes on the market. The cost per square foot of the new home is less than the cost of the existing home; additionally, the cost of the lot is primarily less than existing.