Executive Search Firm News - Real Estate 2006

2006 banner year for real estate

The real estate industry will be in hot in 2006, producing its second best year on record, predicts RE/MAX Chairman Dave Liniger.

“What’s happened is the economy has been fueled by the real estate market, which has shown continued strength,” Liniger said, predicting a great year for real estate executives.

In 2005, existing homes sales were up 4.2 percent over 2004 figures, with $7.02 million sales reported by the National Association of Realtors.

As well, real estate executives reported median home prices rose from $185,200 in 2004 to $208,700 in 2005, a trend expected to continue in 2006.

While the National Association of Realtors reported a 5.7 decrease in sales in December 2005 with similar declines in November, Liniger says real estate executives will turn that decline into a springboard for 2006 growth.

“I don’t think the last two months are anything worse than a normal cycle of the real estate business. November and December declines were a normal reaction to fluctuating interest rates,” he said. “I think we are going to see an outstanding year for the real estate business.”

Among Liniger’s other predictions for 2006:

• Baby Boomers will “keep the market hot” with real estate a solid investment
• Price appreciation between 3 and 6 percent in some regions of the country
• A modest climb in interest rates “in the neighborhood of 6.5 percent”

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