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Only 6 States Real Estate Still Appreciating
By Mike Colpitts
Home sales in the over-whelming majority of local real estate markets have slowed throughout the US, according to the latest survey of Housing Predictor.com, an information driven website, which provides real estate market forecasts for all 50 US States.
Some 86% of 350 US local markets surveyed on a regular basis have transformed into buyers markets. Many have turned into markets that have become negotiable enough to be beneficial to purchasers after nearly five years of upward appreciation.
Only six states local real estate markets are still favorable for sellers, most of which are in the southeastern part of the nation. Only the last frontier of Alaska remains elsewhere as the longest lasting last strong hold in the greatest nationwide real estate market appreciation in US history.
However, because of slower market dynamics and upward mobility the Alaska real estate market is also still not only showing strong signs of appreciating, but should weather the on coming cyclical winter weather slowdown well through the last part of 2006.
Louisiana, Mississippi, Alabama, Tennessee and Kentucky are the last strongholds with local real estate markets that are still appreciating. The south-east is growing at the fastest pace in US history.
Lenders and real estate agents in Nashville, Tennessee still report home sales at brisk levels. Other markets scattered throughout the three other states report equally compelling sales figures.
The national inventory of re-sale homes, condos and townhouses has hit historic levels and foreclosures in some areas of the country are already becoming commonplace, including Denver, Colorado and Indianapolis, Indiana.
Historically low interest rates kept in check by the Federal Reserve Board provided a fast paced market in many areas of the country for as long as five years until the Fed hiked interest rates for borrowers 17 times.
Now faced with a worsening housing market nationally and the possibility of inflation, the Fed's policy makers have the task of balancing the scales to keep inflation under control without tipping the cart to cause further economic problems.
New lending guidelines have also been instituted in many cases to help stave off further loan frauds on the heels of FBI reports that loan fraud is a national epidemic.
The fraud is expected to hit $5-billion, according to many analysts. But compared to the massive fraud that swept the housing market in the late 1980's caused by the Savings and Loan Scandal the developments are mild in comparison. The S&L Crisis was estimated to cost every man, woman and child in the US $10,000.
The national real estate market has clearly shifted to a buyers market, where prices are falling in many areas. Multiple listing service reports indicate a national slowdown in sales volume. Real estate economists expect sales to improve as prices lower, and look for the slow down to improve in early 2007.
About the Author
Mike Colpitts is the editor of Housing Predictor.com, an information driven website which forecasts local real estate markets in all 50 US States. For a break down of each states local markets visit http://www.HousingPredictor.com
Article Source: http://www.simplysearch4it.com/article/42270.html
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