Inman News asked industry professionals from around the nation to give us their own market forecasts for 2006. Here’s a sampling of what they had to say.
Jeni Temen
Realtor
Dickson Realty
Reno, Nev.
1. What do you expect in your market next year?
I think it’s going to be good. We have a special deal in our area – Californians are moving here. The market is leveling a little bit, but not going down.
2. What are you worried about?
Nothing to be worried about yet.
3. What are you excited about?
The area is still growing unbelievably.
4. What is the worst-case scenario for next year?
Prices will continue to go up the way they have been, with double-digit increases. If that happens, ordinary people won’t be able to buy a home. Incomes have not increased enough.
5. What is the best-case scenario for next year?
For things to continue the way they are, leveling off.
Rich Draheim
Realtor
USA 4% Realty
Mankato, Minn.
1. What do you expect in your market next year?
It’s going to be downward. It’s going to be a buyer’s market. They have been overbuilding in my area. Prices were stable in 2005, but I expect a 2 percent to 3 percent drop in 2006.
2. What are you worried about?
Actually, I’m not worried.
3. What are you excited about?
Not so much excited, but confident. Interest rates will go up, but not much – they’ll still remain under 7 percent. The new head of the Federal Reserve, Ben Bernanke, will keep them down.
Katie Wyatt
Realtor
Keller Williams
Wichita, Kan.
1. What do you expect in your market next year?
It’s strong and getting stronger all the time. I expect steady growth in house prices in 2006. House prices are reasonable here – $150,000 for a brand-new home.
2. What are you worried about?
The mortgage interest deduction.
3. What are you excited about?
Being a Realtor! I’ve only been in the profession for six months and I have sold 11 homes in the last three months.
4. What is the worst-case scenario for next year?
The mortgage interest deduction is taken away or changed.
5. What is the best-case scenario for next year?
The market continues to get stronger.
Ann Mann
Realtor
RE/MAX Elite
Brentwood, Tenn.
1. What do you expect in your market next year?
Prices were up in Nashville about 10 percent in 2005. I expect this to continue in 2006. Nashville is growing; the population is exploding.
2. What are you worried about?
I’m not really worried about anything, though I’m concerned about the mortgage interest deduction.
3. What are you excited about?
This year, 2005, was my best year ever, and I’ve been a Realtor for 15 years. Investment groups from California are buying houses from me sight unseen because the prices are so reasonable compared to California.
4. What is the worst-case scenario for next year?
If interest rates went up, that would not be good.
5. What is the best-case scenario for next year?
For things to stay the same, perhaps even more growth.
Paul Shahan
Executive officer
Northwest Mississippi Association of Realtors
Nesbit, Miss.
1. What do you expect in your market next year?
There was a tremendous amount of residential development going on in our area before Hurricane Katrina hit. A lot of people are moving out of Memphis, Tenn., to our area. It was the fastest-growing market in Mississippi before the hurricane. It’s the typical pattern of people leaving large cities and looking for affordable housing.
We expect the market to be hot well into next year.
2. What are you worried about?
No worries.
3. What are you excited about?
The Northwest Mississippi Association of Realtors is growing at the rate of one member a day. We’re up to 170 members now.
4. What is the worst-case scenario for next year?
I’m not sure there is one. We are very protected against declining house prices because of all the people moving to our area, and now with new evacuees needing homes, that will insulate us even more.
5. What is the best-case scenario for next year?
We’ll continue at our current growth rate.
Greg Mathers
West County manager, business development
Alliance Title
Richmond, Calif.
1. What do you expect in your market next year?
It will be a buyer’s market. It has already switched to a buyer’s market. But the market is not bad.
2. What are you worried about?
The interest rate skyrockets, the market slows and we don’t close deals.
3. What are you excited about?
I just opened up a new title office.
4. What is the worst-case scenario for next year?
The bubble will burst. Greenspan still has a couple more opportunities to gouge us and raise interest rates.
5. What is the best-case scenario for next year?
The market will continue as it has been. I would like to see the prices not continue to go up because that devalues the buyer’s dollar. It’s killing us, crushing our market now.
***
Send tips or a Letter to the Editor to janis@inman.com or call (510) 658-9252, ext. 140.
