By Mark Abromaitis
THE ERICKSON TRIBUNE

All markets fluctuate, but the real estate market may not be as bleak as many media outlets are saying. Recent reports show the real estate market is still profitable for most sellers, and the prospects for 2008 are looking up.

The realistic view
Lawrence Yun, the National Association of Realtors vice president of research says in Realtor Magazine, “It’s all a matter of perspective. Home sales do continue to be soft. We’re predicting home sales to be down 7% … at the end  of 2007, but that’s coming off of a five year boom. We’re forecasting a sales level near 2002, a very good year, and a year that’s far closer to normal than we’ve seen over the past four years.”

A good return on investment
He also says that homes, as investments, are still making people money. “At the same time, price appreciation is holding up better than media reports would have us believe,” he says.

Marie Dmoch, retirement counselor at Ann’s Choice, an Erickson community in Warminster Pa., says that people who have owned their homes for longer than five years are seeing significant returns on their investment.

“If you bought your home in the last three years—during the boom— you won’t see that much of a profit,” Dmoch says. “But if you bought your home five, ten, or even 20 or more years ago, you should make a significant profit on the sale of your home.”

A recent report from Acxiom Real Property, a data collection agency, supports Dmoch’s claim. The report shows that average home values in Warminster have increased almost five times in the past 30 years. In 1977 the average purchase price in the Philadelphia suburb was $53,907. But today the average price is $271,777, which means these homeowners  could see a $217,870 dollar profit on their investment.

On the front lines
Bucks County Realtor Lynn Kelleher says the real estate market, much like the stock market, is tough to time but agrees that the market is much better than reported.