Thursday, April 26, 2007
Thinning the herd
In the past few years, the number of real estate sales agents has grown astronomically since the market started to pick up steam in 1997. Consider these numbers. In 1997, there were 716,078 agents who were members of the National Association of Realtors. In 2006, that number had skyrocketed to 1.36 million, an 89.6 percent hike.
Like the market itself, the growth and decline in the number of real estate agents is cyclical. With the recent correction in the real estate market, the number of agents is going down. The NAR is projecting a drop of 4.3 percent this year and another drop of 10 percent the following year. After that shakes out, there will be about 1.17 million agents nationwide.
Like the market itself, the growth and decline in the number of real estate agents is cyclical. With the recent correction in the real estate market, the number of agents is going down. The NAR is projecting a drop of 4.3 percent this year and another drop of 10 percent the following year. After that shakes out, there will be about 1.17 million agents nationwide.
Thursday, April 05, 2007
Rates inch higher
Mortgage interest rates for a 30-year fixed rate mortgage are around 6.25 percent, according to bankrate.com. Rates for a 15 year fixed rate mortgage are around 5.97 percent.
That's a pretty good rate if you are looking to buy a house. The low interest rates are prompting a lot of people to get back in the home-buying market.
That's a pretty good rate if you are looking to buy a house. The low interest rates are prompting a lot of people to get back in the home-buying market.
Tuesday, April 03, 2007
Hot here; cold there
Compared to other parts of the state, the real estate market in Southeastern Pennsylvania is red hot. I was in Pittsburgh for a funeral last month and was shocked to learn how little a relative's house was worth.
He has a beautiful home, about 3300 square feet, four bedrooms, 2.5 baths, nice lot on about one-third of an acre. They are planning to move soon, and he said he would be happy if he was able to get $280,000 for the property. I was incredulous. I told him that in Bucks and Montgomery counties, he could probably get between $550,000 and $600,000 for a similar property. Also, there appear to be a ton of homes for sale.
But that's the way the housing market is in Pittsburgh. I don't know why that is. I suspect it might have something to do with the scarcity of good jobs and cost of living, Whatever the reason, the housing market in the western part of the state is certainly a lot different than here.
He has a beautiful home, about 3300 square feet, four bedrooms, 2.5 baths, nice lot on about one-third of an acre. They are planning to move soon, and he said he would be happy if he was able to get $280,000 for the property. I was incredulous. I told him that in Bucks and Montgomery counties, he could probably get between $550,000 and $600,000 for a similar property. Also, there appear to be a ton of homes for sale.
But that's the way the housing market is in Pittsburgh. I don't know why that is. I suspect it might have something to do with the scarcity of good jobs and cost of living, Whatever the reason, the housing market in the western part of the state is certainly a lot different than here.
