"If I were to make a prediction for 2007 I would be inclined to predict fairly strong sales from March until June as some of the "wait and see" buyers get off the fence and buy something. Unless something changes, I think 2006 and 2007 will look alike, except the foreclosure rate will be higher.
The real estate industry in the twin cities will see some changes. There simply is not enough business to support the number of REALTORS we currently have. Our local associations have predicted that as many as 40% of our local REALTORS will leave the business. I will be following the numbers closely to see if the prediction comes true." From: Back to work – 2007
I was right about the foreclosures but that was a no brainer. 2007 did not look like 2006. Local home prices went down and so did the number of homes sold. The number of Realtors has remained high. I have been trying to get some numbers to see if some Realtors have quit. It wasn’t me who predicted the 40% exodus and I know that it isn’t going to happen.
The "wait and see" buyers did not get off the fence in 2007. They are still sitting there. On the one hand housing is more affordable than it was a year ago and interest rates are still decent. On the other hand they "wait and see" folks are waiting for prices to go down more but at the same time they are worried about buying real estate if the prices are going down. Kind of a catch 22, and I will predict that they will stay in "wait and see" mode a bit longer, probably until the news media stops the gloom and doom stories.
I can’t wait to see how many of Erik Hares Predictions for 2008 come true. he wrote the predictions post last Sunday. See "predictable"