The National Association of Realtors reports sales went down 8.6 percent in 2006. That’s for homes already built, not new [tag-tec real estate ]construction[/tag-tec]. Prices will continue to go down simply because of the basic economic concept of supply and demand.
Builders in some parts of the country are offering almost insane incentives to get people to buy leftover contracts. That’s because earlier balking buyers backed out of contracts; forfeiting their deposits. Now builders are stuck with the inventory. Expect fantastic buys here if you are in the market for a dream home for your family.
Economists are predicting around a 2 percent gain in gross domestic product growth. That’s the lowest since 2002. That’s because [tag-ice]housing[/tag-ice] will be pulling it down somewhat. It is expected to subside as the year wears on. Those figures confirm we won’t be sliding into a [tag-cat]recession[/tag-cat] because of housing.
[tag-cat]Interest rates[/tag-cat] will remain stable and may, if fact, go down slightly in 2007. The economy is at the crossroads and the Federal Reserve doesn’t want to do anything that would lead it down the wrong garden path.
Over all it’s looking good for us. There’s only one thing that could put it all in a tailspin and that’s oil, of course. Many [tag-cat]economists[/tag-cat] do not expect oil prices to rise too far from where they are now, give or take some small fluctuations. That’s if the Middle East stays stable.
So where do we go in 2007? Right far.