Expect to see a flurry of first-time buyers browsing an oversupplied housing market in spring 2007, says Charles Huzenis of Jameson Realty Group. With supply still exceeding demand it will be difficult to sell a home and “move up” to a new one, but renters, obviously, don’t have to worry about selling a home, so they’ll take advantage of interest rates, which will remain reasonable, Huzenis says.
“I think probably their accountants are telling them they need a write-off,” Huzenis says. Demand for homes is “penting up” but supply will still exceed demand so buyers can look forward to better prices and builder incentives, he says.
“Every week there is a lot of construction coming to market on the new-construction side, and we feel there is going to be a lot on the resale side,” says Huzenis. “Some new-construction projects are going to do fine. A lot will have problems because there are only certain projects that are going to be accepted with velocity in the market.”
Huzenis says residential developments offering good views, prices and incentives will perform the most strongly. He predicts that the condo conversion development Park Monroe, 55 E Monroe St, will continue to perform well because “you can walk up and see what you’re getting,” as will the new-construction development Aqua, which offers views of the lake and city skyline.