RISMEDIA, Jan. 9, 2007-(MCT)-In 1964, Alexander Paiva paid $18,500 for his ranch-style house in Bristol, RI’s Hopeworth neighborhood. More than 40 years later, the property has an appraised value of $285,000.

RISMEDIA, Jan. 9, 2007-(MCT)-Jenn Vest made what she thought was a fair offer on a house in Broward County, but the seller rejected it and wasn’t much in the mood to haggle. The same thing happened on another property.

RISMEDIA, Jan. 9, 2007-Pat Vredevoogd Combs, president of the National Association of Realtors(R)(NAR), hailed the actions of the 110th Congress for quickly moving forward with key legislation that NAR believes will ensure that the nation’s real estate industry remains competitive.

RISMEDIA, Jan. 9, 2007-”The go-go days of rapid home sales are over, at least for now, and this may cause some consternation for agents wrestling with how to grow their business in a new environment where potential sellers are holding out for a higher price and buyers are sitting on the fence, waiting for rates to drop and home prices to fall,” says Virginia Cook, Special Liaison for Large Firm Relations, NAR. “More than ever, it is essential that proper resources and support are offered by brokers and then utilized by sales associates. As entrepreneurs, they must play the part completely and enthusiastically.”

Mortgage rates could go up even if Fed slashes short-term rates

Housing and finance experts say lower interest rates and a healthy economy could help housing markets rebound in 2007.
 
But there’s no guarantee that a surge in oil prices or another unexpected jolt to the economy won’t send the country into a recession, with long-term interest rates soaring even as the Federal Reserve cuts short-term rates to encourage borrowing.

The slowdown in housing helped keep inflation in check in 2006, allowing the Fed to take a break from a string of 17 straight increases in the short-term federal funds interest rate since 2004. Many analysts now expect the Fed to cut the benchmark short-term interest rate in 2007 to avoid curtailing economic growth.