Our Agents Buying Guide Selling Guide Short Sale
& Foreclosure
Info Mortgage Calculator Market News MV Resources New Homes Construction Testimonials Contact Us Location The Vineyard Photo Gallery Read Our Blog

Chuck Lemire, Regional Director and Executive Vice President of RE/MAX of New England reports on the state of the market in 2006.

"Although there has been widespread speculation and discussion about the proverbial "real estate bubble" and the subsequent "bursting of that bubble," in actuality, consumers should feel confident about the future of the real estate industry in 2006 and beyond.  True, we are coming out of a red-hot period with the lowest interest rates in 30 years, but that type of scenario cannot and will not last indefinitely.  What we are seeing now is the market beginning to normalize and adjust to where it should be.

Why should consumers still feel confident in this market?  Economic factors like consumer confidence, interest rates and employment rates indicate that the real estate market will continue to remain stable with no "burst".  In New England specifically, the unemployment rate is historically low.  We have large, financial firms bringing new jobs to our communities.  Interest rates, even though they have risen slightly in the past six months, continue to remain at historical lows.  Combined, these factors provide an increasingly healthy marketplace, in which sellers receive a fair price and buyers are not overpaying due to limited supply.

Consumers should approach 2006 with confidence.  The market is normalizing, and a new generation of buyers, Generation Y, comprised of more than 78 million young consumers is emerging.  Combined with Generation X and the Baby Boomers, the industry is poised for a healthy and stable market over the next decade.  During that time, interest rates will likely continue to rise marginally, but expect stability.  Rates will continue to be at historical lows and will not reach the double digits as they did in the late 1980s.

This balanced market provides more long-term stability for the real estate industry and especially for consumers--both buyers and sellers.  While we enjoyed the "red hot" market of the last several years, that market cannot endure for a long period of time.  A healthier market is one with stable growth, reasonable interest rates, and a balance of supply and demand."