Home Sales "Starting to Recover"
Much attention was given to the dire state of the U.S. Housing Market in 2006. While the newspapers were full of ominous real estate news,the National Association of Realtors® referred to 2006 as a year of contraction, a correction that was sorely needed after five years of a booming housing-market expansion.

Inflated home prices in some areas of the United states at the end of 2005 scared off many would-be home buyers, leading to drop in sales last year of 8.2 percent for existing homes, 17.4 percent for new home sales and a decrease in housing starts of 12.5 percent. The repercussions of falling home prices and high inventories in 2006 are still being felt into this year, however, there are a few factors that are making 2007 look a lot brighter than previously expected.

First of all, mortgage rates continue to be historically low, so consumers who have been holding off buying a property can still take advantage of reasonable financing rates. Secondly, depending on where you live, properties may be priced at a more reasonable level, which will stimulate buying activity. And thirdly, according to Lawrence Yun, Senior Forecast Economist at the National Association of Realtors®, worker's wages are increasing as well, as the tight 4.5 percent jobless rate reported at the end of 2006 forces employers to bid workers at higher wage rates. The combonation of all these factors has helped raise housing affordability toits highest level in 18 months.

Of course, all real estate is local, so in order to find out what the forecast is for your particular area, please give us a call. One of our experienced real estate professionals will be glad to explain what is going on in our local market to you. They will be happy to research the specific neighborhoods you're interested in, and provide up-to-date real estate information to help you determine your own buying and selling plans.

Get Creative

Like paint, accessories are great, and interesting, way to breath new life into any room. This is especially true for the budget-conscious, since, when it comes to accessorizing, less is more, anything goes and creativity can sometimes be more valuable than cash. Look through your belongings and make a display out of items that have something in common, whether it's their color or their function. Turn just about anything into artwork by framing it. use fabric, mosaics, or paint to turn something old into something new.