What’s a Home Seller to do in 2006?
ForSaleByOwner.com, a national real estate services company that allows home buyers and sellers to connect online without the need for a real estate agent, recently took a close look at the upcoming here. It made six predictions for the 2006 real estate market:
1. Shrinking bubble means home sellers seek alternatives. According to industry data, 10 percent of home sellers used a discount method in 2005. As home sales soften in 2006, savvy consumers will keep turning towards alternatives, such no-commission services and discount Realtors to save money on real estate transactions in a softer market.
2. From “for sale” to “for hire.” The number of working Realtors will decrease in 2006 as slower home sales crunch salaries.
3. New construction costs will rise. The price of new construction will rise in 2006 due in part to the volume of materials earmarked for hurricane victims. As a result, consumers will want to buy in more established neighborhoods where they will be able to find better deals.
4. Renovations turn up the heat. Renovation spending in 2006 will reflect the need to offset skyrocketing heating bills. Budgets for fireplace additions, insulation and window sealants will increase dramatically, and more home buyers will seek out these features as they shop for homes.
5. Relocation shake-up. Consumers will relocate in record numbers in 2006 after a tumultuous year that brought hurricanes and mudslides to the coastal communities in the Gulf Coast, Florida and California, and the closing of several military bases across the United States. Expect home sales away from storm-ravaged coastal communities and more activity in military towns like Colorado Springs, Colo.
* Floridahomeloan.com note: this has not been the case so far this year. In spite of the terrible season of natural disasters, areas such as Delray Beach and Jacksonville are still showing strong home sales.
6. Online Open Houses. It’s estimated that more than 74 percent of home buyers currently look online before viewing properties in person. In 2006, however, consumers will also be able to log on to view real-time virtual open houses that feature video tours and online question-and-answer sessions. These features are especially important for people relocating or buying vacation homes.
These are merely predictions. The Florida home loan bubble is yet to burst, so no current evidence supports the notion that individuals are looking to move elsewhere.
