Housing Outlook for 2006
2005 was another record setting year for real estate and housing. In looking to 2006, we found two experts staring into their crystal balls and weighing in with their forecasts.
First up, Mike Sklarz, Chief Valuation Officer at Fidelity National Financial, offers his predications. (a) Interest rates will increase slightly or remain steady (b) West Palm Beach, FL is the most vulernable city in terms of price decline or stagnation (c) Most of California housing is also at risk for a market decline, but some more than others. CA Area’s most suspectable to a bubble burst are Fresno, San Jose, Bakerfield and San Bernadino.
Prediction 2, offered by Dave Collins, VP of Broker Network for realestate.com predicts that (a) interest rates will rise slightly (b) homeowners with older ARM’s will have to seriously consider refinancing, as the new rates crimp their budgets (c) Residential housing will slow to more normal levels. Expect increased days on the market and a return to normalcy (c) consumers want immediate response time when making an online inquiry about real estate. Agents should educate themselves about the shift to online marketing and the public’s love of the internet with regard to property search.