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The Real Estate Economic Experts said housing prices will become more realistic in the coming year. This indicates a gradual lowering process and it is not part of a classic housing downswing leading to a recession.
David Seiders, chief economist for the National Association of Home Builders, and James Glassman, senior economist for JP Morgan Chase, discussed the real estate outlook for 2006 during a NAHB-sponsored teleconference on 12-20-05.
They predict that home mortgage rates will approach 6.75% during 2006.
This could affect homeowners who have adjustable rate and interest-only mortgages significantly. Protective Strategy - Consider refinancing now, to lock in the current lower interest rates before they rise.
The economist also predicted that national home prices would increase 6.5% in 2006 compared to a 11% increase in 2005.
These changes signal the switch from a Sellers Market to a Buyers Market.
Realtors' will now have to work harder to sell each listing. In a buyers market selling real estate is relatively fast and easy.
When the market balance changes to a Buyers Market more homes come on the market so buyers now have more choices and do not feel compelled to suddenly act. Sales slow down and both Sellers and Realtors become nervous.
In a Buyers Market home sellers are afraid that their home won't sell in a timely manner at a reasonable price. Realtors are afraid that their listings won't sell during the listing contract period and they won't earn a commission. The second or third Realtor to market the home may finally make the sale, after the asking price is reduced.
Marketing real estate to today's Internet savvy buyers requires Internet technology and online marketing skills that most Realtors just don't have. It's no longer sufficient to include a new listing in a large newspaper ad with dozens of other listings.
Today sellers don't need to settle for old fashioned real estate marketing of their home. The listing Realtor will earn thousands of dollars if the home sells so they need to make a reasonable investment to help market the new listing.
The latest Internet marketing trend is for Realtors to have a mini-web site created for each new listing. This is usually a high quality, low cost, one page web site which includes both interior and exterior photographs as well as all the specifics about the home.
Serious potential home buyers can quickly review and compare several homes on the internet before touring homes for sale in person. They can save both themselves and the Realtor's time by focusing on the listings most likely to fulfill their needs.
Over 70 percent of home buyers begin their buying search on the internet.
Some search online for the home of their dreams for weeks before contacting a Realtor.
Realtors can have web site designers build these mini-web sites for only a few hundred dollars. This investment in Internet marketing can pay off ten fold by presenting the real estate listing in an advertising medium that is preferred by over 70 percent of home buyers.
 The Real Estate Bubble - Is It Too Late to Buy Now?
RealEstate-Search.com offers a different look at Real Estate markets, featuring over 4,000 eBay real estate listings in 50 States and overseas.
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