I just saw this article from “realtytime.com”. It seems they are trying to scare the renters.
Market Conditions
by Carla L. Davis
The new year is upon us. What should buyers and seller expect from their local real estate market?
Realty Times takes a look at areas across the nation in today’s report.
The National Association of Home Builders released a report on December 21st that highlighted how, while the economy of 2006 appears to be set for decent growth patterns, the real estate market is expected to return to numbers that are similar to that of 2004. That means no bubble burst — but a normalizing of the market.
“It’s pretty obvious at this point that the real estate market is gradually shifting to more of a buyer’s market,” said James Glassman, JP Morgan Chase Senior Economist. “This has been a case of real estate prices catching up to market fundamentals – not a ‘bubble.'” With this in mind, “It’s reasonable to assume that house-price appreciation will be slowing down to the single digits.”
A normalizing market is, however, cause for concern for some sellers. This means that their home, which could have netted them 15 to 20 percent profits (for example) in 2005, might only sell for 10 to 15 percent profits. The numbers vary greatly by area — being affected by local economies, government policies and laws, and a multitude of other factors.
Off of the western coast, Hawaii has seen enormous returns for investors of the last five years.
Our real estate experts report that the Maui real estate market, booming in 2003 and 2004, has showed some recent slowing. Condominium and land unit sales Island-wide for the year through only October had already declined by anywhere from 11 to 15 percent. This slowing in unit transactions, however, was offset by increases in average sales price. These figures are still what some would consider outstanding. Home prices increased 27 percent this year. Condominiums increased by 18 percent. And coming in at the lead, land prices rose 42 percent. These trends are not expected to continue.
Looking to the south, the NAHB notes that manufactured or “HUD-code” homes might see a temporary surge in activity, due to need for affordable housing in areas hit by this summer’s hurricanes.
In San Antonio, Texas, inventories are high, meaning finding a home to buy is easier than in some locations of the country. New homes can be purchased in the low to mid $100,000s. The average current home sales price is $137,971 for last year.
One expert writes a warning for renters, however, saying, “One should note that due to a large influx of investors we are starting to see more days on market for rentals. There are currently 1399 homes available for lease, average days on market is 63, and the average asking rent is 1282 dollars. This is an increase of $239 a month in rent and 7 days more on the market.”
