Press Release

Weichert, Realtors Issues Sunny Forecast for Spring Homesellers

MORRIS PLAINS, N.J. - With the frenzied holiday season over, could the Spring real estate market -- traditionally the busiest for home sales -- be far behind? If selling your home is on your 2005 agenda, Weichert, Realtors’® recent assessment of the market should have you springing forward with confidence.

“The sound fundamentals that are the underpinnings of an active, vital real estate market are still firmly in place,” James M. Weichert, president, said recently.

“What we are seeing is greater stability and more gradual price appreciation,” said Weichert. “This normalization is very positive, as it allays any concerns that price gains might, at some point, outstrip income growth and the ability to buy. It clearly indicates a healthy Spring real estate market with good, sustainable activity for the foreseeable future.”

Affordable interest rates are expected to continue to bolster home buying. While mortgage rates may edge up a point or so from their record lows, any impact on home sales should be negligible as rates would still be low historically. Nationally, at the close of 2004, the benchmark 30-year, fixed rate loan hovered around 5.8%. According to Weichert Financial Services, that compares to rates of more than 8% in 1994 and 12 to 13% in 1984, when rates were twice as high as today.

Along with low interest rates, another key factor in affordability is how homes are financed now. Although home prices have risen considerably after years of record sales, thanks to the virtual explosion of new mortgage products, more people than ever are finding they can afford their first home or readily trade up to their ultimate dream.

For first-time buyers – the “market movers” who enable sellers to move up -- the down payment no longer looms as a stumbling block. A variety of mortgage options allow the purchase of a home with little or no money down. And trade-up and first-time buyers alike are finding that monthly mortgage payments can be surprisingly low, depending upon choice of financing. Weichert Financial Services, for instance, offers some 370 mortgage products, each with different rates and terms.

Just as important, an improving economy with promising job growth and low inflation bodes well for the Spring market and the year ahead. Consumer confidence is generally high.

As for overall trends impacting home sales, U.S. population growth continues to drive demand, along with certain favorable demographic trends, including a burgeoning number of home purchases by single people. Growing household wealth is a factor as well, stimulating the desire to trade up to more square footage and greater luxury or buy a vacation home.

Weichert said, “Whether people want to buy up, scale back, invest in real estate, or purchase a first home, the Spring market will accommodate them nicely. Virtually all signs – including the volume of activity in our neighborhood sales offices -- strongly suggest another near-record year for home sales.”

For specific insights into your neighborhood real estate market, or advice on preparing and strategically pricing your home for sale, contact your local Weichert office.

Weichert, based in Morris Plains, N.J., has more than 13,700 sales associates in nearly 300 company-owned and franchised sales offices in key markets throughout the U.S. A family of full-service real estate and financial services companies, Weichert helps customers buy and sell both residential and commercial real estate, and streamlines the delivery of mortgages and home and title insurance. For more information, call Weichert's customer service center at 1-800-USA SOLD or visit Weichert's Web site, www.weichert.com. Each Weichert franchised office is independently owned and operated.