Press Release

Weichert, Realtors® Expects Another Robust Spring Market

MORRIS PLAINS, NJ — With interest rates low, the economy humming, and the demand for homes strong, Weichert, Realtors® expects another very active spring real estate market.

                James M. Weichert, president, said, “What we will likely see in the months ahead is a market that is quite robust, yet more normalized.  Real estate industry experts believe 2006 will be the third strongest year in history.” 

                According to Weichert, as the demand for homes and the available supply come more into balance, buyers and sellers in this normalizing market will enjoy “an ideal situation.”  An expanding inventory of homes for sale means more choices for buyers, he said, while those with a house to sell can readily leverage their gains of recent years to trade up.  

                Spring home buyers will see their purchasing power bolstered by the continuation of the historically low interest rates that have helped drive the long-running real estate boom.  At the same time, in sharp contrast to the days when down payments typically had to equal 20 percent of a home’s purchase price, today’s vast array of mortgages requiring little or no money down make homeownership possible for more people than ever before.  Weichert Financial Services, for instance, offers more than 360 different mortgage products, virtually ensuring that qualified buyers can secure a loan with the best terms and conditions for their financial goals.

Along with the attractive home-financing picture, household incomes in the U.S. continue to make steady gains.  As a result, the “affordability index” remains favorable.   The most recent figures available from the National Association of Realtors put the composite affordability index at approximately 115.  That means that median-income homebuyers have 115 percent of the income needed to qualify for a median-priced single-family home at prevailing interest rates.

Given the market’s sound fundamentals, Weichert expects the demand for homes to remain high for the foreseeable future, as nationwide demand outstrips supply.  Key factors driving demand are population growth and changing demographics, including the trend for young adults in their 20s and early 30s to no longer put off a home purchase until marriage.  Immigrants pursuing the American dream are purchasing homes in ever increasing numbers as well.

The National Association of Realtors has predicted that 2006 will be the third best year on record for home sales with 8 million sales projected, and that most markets will see continued price appreciation.

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

Weichert has more than 17,300 sales associates in nearly 400 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.