NEW YORK, Jan. 4, 2007
Expert: Home Prices To Stay Steady In '07
Mark Nash: Neither Buyers Nor Sellers In Driver's Seat; Offers Tips To Both
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Play CBS Video Video 2007 Real Estate Trends In 2006, the housing market cooled off. Can it bounce back in '07? Mark Nash, a Chicago real estate broker, author, and columnist, discusses real estate trends with Julie Chen.
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Real estate expert Mark Nash predicts a stable housing market for 2007. (CBS/The Early Show)
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On The Early Show Thursday, the Chicago real estate broker, author, and syndicated columnist told co-anchor Julie Chen things aren't as bad as they've been portrayed.
"The market, in general, is made up of many local markets," Nash said. "But I think prices are stabilized. In some states, like Texas, we're still seeing a big rise in home appreciation. I was talking to a real estate journalist in Syracuse, N.Y., and he's like, 'Oh, Mark, we're just starting that rise up."
Overall, predicted Nash, "We're gonna be somewhat plateaued, price-wise," though he stressed it's difficult to characterize the nation as a whole.
Nash points out that personal income hasn't kept up with home price appreciation, and that's resulted in prices finally stabilizing.
It's not a buyer's market, Nash says. Buyers perceive that the pendulum swung in one fell swoop from sellers to buyers last year, but in reality, we are in a balanced market, where no one is driving real estate transactions. Prices have flattened or even declined two-to-five percent, but homes that are priced right are still selling within six percent of their asking price, and extremely popular homes still command multiple full-price offers.
Nash says he firmly believes the first half of 2007 will feature many "deferred demand" buyers — those who sat on the sidelines in 2006 with concerns about buying at the top of the market, and those who were struggling with high gas prices. The demand from those buyers may even be strong enough to spur some spotty market frenzy, as we saw in 2004-2005. The last two months of 2006 saw some of the strongest market activity of the year, and that's usually a very quiet time, even in a hot market. Nash feels that activity bodes well for 2007.
Based on all that, what advice does Nash have for buyers and sellers?
BUYERS
"I think buyers really perceived in 2006 they were gonna be driving the market, which was so contrary to the previous years," Nash said to Chen. "They're like, 'Oh, yeah, we finally have some power,' and sellers, if their home was priced right, they knew it, and they had recent comparables from the last six months. So, you bring in a low-ball offer on a priced-right home, and sellers are going to say, 'No, thank you.' You might alienate them."
SELLERS
NEW FEATURES EMERGING AS SELLING POINTS
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I was victimized by the lies of the realtor when I bought my new build and again when I sold it. The result I am out 65k & renting and I consider myself lucky. I have the ability to buy but I chose not to because prices are still sliding dramatically and I'm not about to buy into a declining market. Buyers are not on the sidelines waiting to "jump in" they are living their lives realizing the American dream is currently corrupted by a middleman monopolistic industry that was the cause of the prices being way out of line. When I buy I will go FSBO and go w/ my credit union that charges none of these fake/surprise fees at closing making the transaction as efficient as possible. I will demand a low ball offer, incentives and coverage of any transaction costs. Housing will be affordable again when guys like this are put out of business and flipping burgers, the only service they are qualified for as experts.
I was victimized by the lies of the realtor when I bought my new build and again when I sold it. The result I am out 65k & renting and I consider myself lucky. I have the ability to buy but I chose not to because prices are still sliding dramatically and I'm not about to buy into a declining market. Buyers are not on the sidelines waiting to "jump in" they are living their lives realizing the American dream is currently corrupted by a middleman monopolistic industry that was the cause of the prices being way out of line. When I buy I will go FSBO and go w/ my credit union that charges none of these fake/surprise fees at closing making the transaction as efficient as possible. I will demand a low ball offer, incentives and coverage of any transaction costs. Housing will be affordable again when guys like this are put out of business and flipping burgers, the only service they are qualified for as experts.
This is the worst advice ever. If I was going to be obligating myself to hundreds of thousands of dollars in debt the least of my concerns would be the seller's feelings. Being stuck in a house because it isn't worth what you paid for it is a nightmare. I'd advise you let it be someone else's nightmare.
This is the worst advice ever. If I was going to be obligating myself to hundreds of thousands of dollars in debt the least of my concerns would be the seller's feelings. Being stuck in a house because it isn't worth what you paid for it is a nightmare. I'd advise you let it be someone else's nightmare.
If they take out of the market and rent it out%u2026%u2026. Rents go down.
Craiglist.org has nine and half pages; 100 listing each for new rental in just one day, yesterday for the city of San Diego. 4 months ago, probably 1 to 2 pages a day, and the rental deals are way sweet!
If they take it out off the market, and their ARM mortgage explodes%u2026%u2026. more foreclosures. Sweater deals down the line for home prices.
But they just might be smart enough to realize that they were taking part of one huge Ponzi Scheme, and take your offer.
Either way you win!
Don%u2019t buy unless they meet your terms. In the meantime enjoy their sweet rental deals.
Remember this Buyer: Sellers did not give a *** about you when they were pitting you against other buyers to get the most for their Tulips, oops, homes in the nutty housing boom times. Don%u2019t even consider letting them off the hook. You will get the deal of you life in a year or two! Take that to the ( Bankrupt Subprime) Bank.
Allienate sellers? So what? For the last five years I don't recall sellers fearing alienating their buyers by asking a ridiculous fortune for their houses.
This guy is just another Shill from the Real Estate Industrial Complex. Prices are already plummeting in all bubble markets despite the best efforts of the Real Estate Industrial Complex to deny it and distract the public.