Real Estate: How Far Will It Fall in 2008?
Alex Frangos from The Wall Street Journal Online says "There is one big question looming for homeowners and commercial real-estate investors this year: How much worse will it get?"
He describes "the past year was the most painful in decades for residential real estate, as defaults on loans to less-creditworthy borrowers created a broader credit squeeze. House prices fell, home ownership dropped, foreclosures soared, and the housing market emerged as the soft underbelly of the economy."
More bad news with these quotes from the chief economist at economy.com
Relief from the housing woes is unlikely anytime soon. "It will be another very bleak year with the worst of it occurring in the first half," predicts Mark Zandi, "Inventory is only growing and needs to be worked off before the market finds some stability,"
"Mr. Zandi's models predict a bottom to the housing market sometime in 2008, but only if the economy stays relatively strong." "If it slides into broad-based recession, it won't be until the end of the decade that the market finds a bottom,"
In a market like this only the most competitively priced homes will be selling soon. If you have an active listing, get a current appraisal from a certified appraiser. Use this as a second opinion to compare with your Realtor's market analisys. The market is changing rapidly.
Are you thinking of listing your house? Prior to interviewing Realtor's get an independent appraisal. Complete appraisals of single family homes and condominiums start at $275.00. this is a small price to pay for knowledge that will help you position your house in the current market.
For all Chicagoland appraisals contact Citywide 312-479-5344