A New Year for Real Estate

We are entering a new year as is custom, with optimism, celebration and hopes for greatness in the year to come. But can these wishes be qualified by economic predictions? The previous year in real estate left investors wanting and fueled further skepticism concerning the condition of the market. One thing is certain, people are tired of this flaccid market and are ready and waiting to resume business as usual.

Will 2008 contribute to a three year long plunge in housing prices, and continue to stagnate home sales as foreclosures continue to pile up? The NAR doesn't think so. They believe housing prices have dropped enough to entice buyers back to the market. This year should be the first time in three years we'll see a rise in home values.

If a person were to analyze economic fluctuation one could postulate that the previous three years were foreshadowing a recession. The housing recession was part of a bigger problem of instability due to a weakening economy. The housing market slump hits people harder than most symptoms of recession in the economy and is mentally and emotionally taxing. The NAR projections are representative of the hope and assuredness that our economy will bounce back.

Forecasted projections aren't concise: the margin of error is too large to base an accurate prediction. The NAR's positive projections for 2008 are a sign that things may start to get better, but the rate at which they get better is something that must be monitored to refine actual market analysis of progress. One thing is for sure: constant vigilance will be the theme of success in 2008.