Soft landing?

The president of NAR (National Association of Realtors) spoke before a Congressional committee last week.  Included in his predictions were:

1. That sales of existing homes would drop about 8% in 2006 followed by a further drop of 2% in 2007.
2. The appreciation in home prices would only be 3% in the next year.

Mr. Thomas Stevens, President of NAR, says that this will be a "soft landing" from the high flying markets we have seen in the past few years.  He noted that several areas of the country including all the South except Floriday were still experiencing price increases.  While areas that had seen recent extreme price inflation, including Florida, California, Arizona, Nevada and Virginia, were seeing a great market slowdown.

While we are not in disagreement with Mr. Stevens about the state of the housing market, we wonder what local Sellers think.  In the Denver metro area right now there are 30,000 homes for sale - plus or minus.  So if 10% of those won't sell over the next year that means 3000 Sellers who desire to sell their homes are going to be disappointed.

If I were one of those 3000 Sellers I wouldn't necessarily think it was a soft landing.  From my perspective it would be a big thud.

9:40 AM - Sep. 19, 2006 - comments {0} - post comment

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