Market Trends
Turning the Bad Press around by listening to the professionals!
“Economy in Focus”. Lawrence Yun, NAR VP interviewed by Robert Freedman of Realtor Magazine, November 2007.
• Prediction of existing home sales down 7% for 2007. BUT, after a 5 year high, leveling to normal figures of
2002 is happening (and that was a “very good year”).
• Analysts use county records and mortgage data from the secondary market, lagging in information. Real Estate
professionals use the MLS data which is “timely and more representative of market” (3rd quarter of 2007 is
showing “positive price growth”).
• Foreclosures may rise in 2008 because of “teaser rates”, but that market is “less than 1% of the market”. (New
Mexico foreclosure rate has decreased 9%).
• The challenge is the psychology beyond the headlines: inventories are flush, prices are moderating, interest
rates remain historically low. It is a very good time to buy.
• Loans? If you are a good risk, credit will be there. Can’t qualify for prime loans, options still are available. FHA
reforms are being backed by NAR.
“The Market’s (stock) Mixed Message”. US News & World Report, 11/12/07.
“The economy did turn in its best back-to-back quarters in four years, booming 3.9% in the July – September
quarter.” …”better than expected report from the Labor Dept that the economy added 166,000 new jobs in
October, twice as many as predicted”. “Growth to dip to +2% this quarter before rebounding to around
+3% next year as the housing market becomes less of a drag”.