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The Real Estate Slow Down; The End is Near.

November 29, 2006

wallstjrnl1.jpgWith the market having slowed down and price reductions becoming the norm, everyone is aware that we are experiencing a cyclical downturn in the real estate markets.  Buyers and sellers are looking for the bottom and everyone is asking the same question.  Are we there yet?  Well, there are some definite signs that we are getting close.

Nationally, we are seeing the first increase in sales volume since in eight months.  Although the median price of homes sold dropped by 3.5% from last year, the number of existing homes sold in October increased by .5%  The good news is the increase in sales volume which may be in response to more realistic pricing and lower interest rates.

Additionally, the wall Street Journal conducted a survey in which a 2-1 majority of economists have concluded that the worst of the housing slowdown is over.   The economists surveyed expect home prices to fall by .5% in 2007.  In 2005 they predicted a 13.4% increase in home values. 

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