We definitely had an uptick in business, in the city of Boston, over the past thirty to forty-five days, based on real data as well as on information I’ve gathered from other agents.
Whether or not this improvement will continue is anyone’s guess.
Experts aren’t sure what’s going to happen, although most agree that the unemployment rate will stay low and mortgage loan rates will stay between six and 6.5 percent.
Whether or not that translates into buyers re-entering the market, is the real question.
“Home sales were down 18 percent in 2006 from 2005 and I don’t think we are at the bottom of the trough yet in 2007,” Nothaft said. “What limited the affordability was that both interest rates and home prices rose at the same time. We are not going to see that later this year, and we should also have stable family income.”
Susan Wachter, professor of real estate and finance at the University of Pennsylvania’s Wharton School, was not as optimistic as Nofthaft about the 2007 outlook. Not only was the first half of the year  “in the bag” but also the second half was “more in question” and the year as a whole could resemble a repeat of 2006.
That’s a good point. Home prices have plateaued, or even dropped, while household income is stable, or, for those lucky folks, going up, this year.
(I’m not worried about re-setting ARMs or subprime mortgage loans throwing us into an economic tailspin, by the way, but I’m in the minority on that one.)
Subprime mortgages scare Wall Street – By Tom Kelly, Inman News by way of The Boston Globe