How bad will the 2007 housing market be?

Economists predict that next year will be tough, but say some metro areas will hold up nicely and the future may not be as gloomy as some fear.

Americans are increasingly nervous about the real estate market in 2007. They have good reason to be. But the news isn't all bad: Interest rates will remain at historically low levels, homebuyers will see more opportunities, and, best of all, for those planning for the long term, 2009 could be primed for a comeback.

To gauge what the next 12 months might look like, though, BusinessWeek.com asked economists at leading real estate research firms to provide their outlooks for the housing market in 2007. The less-than-festive consensus: Home prices will continue to fall in some markets, and the rate of price appreciation will slow in most places. Declines in homes sales, which directly influence price trends, will set the stage for another year of price decreases in 2008. Foreclosures will continue to increase. For those struggling to hold onto their homes, their net worth will shrink as these homes lose value. Long-term mortgage rates will rise. Housing starts will see double-digit depreciation, the sharpest decline since 1991, the worst year for housing starts on record.

To read more about this go to http://realestate.msn.com/Buying/Article_busweek.aspx?cp-documentid=1699105

HOLLY KAY
BROKER ASSOCIATE
SUNSET REAL ESTATE AND MORTGAGE
951-757-9632