Northeast Market Standing Strong?

The Northeast, as defined by the Census Bureau, includes Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

According to the National Association of Realtors report the Northeast is facing the current real estate bump better than other areas of the country.

It also mentions that prices in the Northeast showed an increase of 1.3% compared to a year ago, resulting in the sixth straight month of appreciation. Home prices nationwide declined 5.1% in October compared to October, 2006. The South dropped 6.7%; the West, 6.9%; and the Midwest, 1.6%.

The Northeast's gain follows five straight months of higher prices on a year-over-year basis, including a 0.2% rise in September to a 6.4% bump in July.

According to Lawrence Yun, NAR's Chief Economist, "For the Northeast, the worst is already past and the question is how fast the recovery will be," Yun said. "Will it be a strong recovery or weak recovery?"

Numbers show that Sales in the Northeast fell 12.6% in October compared to October 2006. while U.S. existing home sales fell 20.7% during the same period.

The Northeast has unique attributes that may keep it strong. Due to our current unfavorable exchange rates, the Northeast market remains an attractive investment for overseas buyers. The existence of many prestigious centers of higher learning and the presence of the most powerful financial corporations in the region will continue to contribute to a robust local market.

Many home sellers have resisted to reduce their asking prices in the north even in a market where demand has decreased, but if economic market conditions change, for example with job cuts or lower bonuses at the end of the year, their expectations will have to adjust.

Nestor N. Romero

www.HomesByNestor.com