The 2007 Residential Real Estate Activity Report, from the Minneapolis Area Association of Realtors:
Mark it, dude. 2007 will go down as one of the most interesting years in the history of residential real estate.
– Jeff Allen, MAAR Research Manager
Though 2007 can definitely be characterized as an interesting year, our feeling is that by the end of 2008, we’ll be looking back at 2007 as a pretty good year, relatively speaking. Here’s why:
It’s all about supply right now. There is simply too much, and too much to come, and with some estimates showing upwards of 35% of existing for-sale inventory in some stage of foreclosure, we find it hard to imagine the market achieving anything resembling price stability in 2008.
Also worth noting, if you haven’t the stamina to wade through the entire report, is that despite the swoon we’ve seen since 2006, total appreciation since 2001 has still been fairly robust. Though some may take that as another sign that we have further to fall, these figures are only slightly higher than the historical average annual appreciation rate of 5-6%.