Home Prices Expected to Rise, Sales to Drop Slightly in 2007

Home Prices Expected to Rise, Sales to Drop Slightly in 2007
The number of homes sold will decline less sharply this year than last year, while price appreciation will gain steam. The median sales price for existing homes is predicted to reach $225,300 nationally.

Real estate slowing felt in W. Valley from the Arizona Republic,
reports that the West Valley's housing market followed the Valley-wide slowing trend in 2006 with homeowners worrying about slipping values and sellers struggling with a sea of listings. But the market is good news for buyers as sellers reduced prices and offered incentives to lure a deal. "Buyers had a lot of choices in 2006 and remain in the driver's seat," said Meredith Andrews, a Realtor at Windermere West Valley in Surprise. "They can bargain a little bit, and sellers have an incentive to make sure their properties look great." However, the growth in the west Valley is helping as it is becoming a desired spot with all of the new master-planned communities and the new Westgate area. As for the West Valley's resale housing market, Andrews anticipates a correction in the market by midyear. "It will take a little more time for listings to start moving again," Andrews said. "The trick will be to price right."

Many Health-Care WorkersAre Priced Out of Housing
These professionals may be in demand, but in many cities they aren't able to afford a median-price home, according to a new study.

Housing planned at Town Lake from the Arizona Republic,
reports that two housing developments are proposed for near Tempe Town Lake near the new Tempe Center for the Arts. Town Lake Villas would contain eight multimillion-dollar single-family homes ranging from 4,600 to 5,800 square feet with underground parking with space for at least four vehicles, elevators to the homes second floors and rooftop gardens with Jacuzzis. Next door, plans for more condos and townhomes are being proposed by Zacher Homes, who wants to build four condominium towers that could reach 25 stories. Preliminary plans show the "Residences at the Arts Park" would be on the northwestern corner of Roosevelt and First Street. Neither of the project's developers was willing to talk about prices for the homes, but city officials said they expect the Town Lake Villas homes could cost up to $2 million. The developers behind the Residences at the Arts Park units say the condos will cost about $400 per square foot to build.

Americans struggle to afford housing
An annual income of about $85,000 is needed to afford median-priced homes; salaries have not seen modest gains, according to a study.
While the median home price in the 202 largest metropolitan areas declined 2 percent from a year ago to $248,000 in the third quarter of 2006, mortgage rates rose enough over the year that homes actually became less affordable as pay did not keep pace.
"The real story is what happened to salaries," Lipman said. "Lower-paid occupations - such as in retail, or home health workers - their salaries went up only about 3 percent."