ForSaleByOwner.com, a national real estate services company that allows home buyers and sellers to connect online without the need for a real estate agent, makes the following predictions for real estate in 2006:

1. Shrinking bubble means home sellers seek alternatives. According to industry data, 10 percent of home sellers used a discount method in 2005.

ForSaleByOwner.com, a national real estate services company that allows home buyers and sellers to connect online without the need for a real estate agent, makes the following predictions for real estate in 2006:

1. Shrinking bubble means home sellers seek alternatives. According to industry data, 10 percent of home sellers used a discount method in 2005. As home sales soften in 2006, savvy consumers will keep turning towards alternatives like no-commission services and discount Realtors to save money on real estate transactions in a softer market.

2. From “for sale” to “for hire.” The number of working Realtors will decrease in 2006 as slower home sales crunch salaries.

3. New construction costs will rise. The price of new construction will rise in 2006 due in part to the volume of materials earmarked for hurricane victims. As a result, consumers will want to buy in more established neighborhoods where they will be able to find better deals. 

4. Renovations turn up the heat. Renovation spending in 2006 will reflect the need to offset skyrocketing heating bills. Budgets for fireplace additions, insulation and window sealants will increase dramatically, and more home buyers will seek out these features as they shop for homes.

5. Relocation shake-up. Consumers will relocate in record numbers in 2006 after a tumultuous year that brought hurricanes and mudslides to the coastal communities in the Gulf Coast, Florida and California, and the closing of several military bases across the United States. Expect home sales away from storm-ravaged coastal communities and more activity in military towns like Colorado Springs, Colo.

6. Online Open Houses. It’s estimated that more than 74 percent of home buyers currently look online before viewing properties in person. But in 2006, consumers will also be able to log on to view real-time virtual open houses that feature video tours and online question-and-answer sessions. These features are especially important for people relocating or buying vacation homes.

ForSaleByOwner said its revenues and listings have grown 100 percent year-over-year since 2001, and that site traffic has grown by 125 percent year-over-year. More than 40,000 homes were listed with ForSaleByOwner.com in 2005, up 45 percent from the previous year and there are currently 55,000 FSBO and foreclosure homes listed on the site.

The company estimates that it saved consumers more than $500 million in real estate commissions in 2005.

If you or your company have a real estate forecast for 2006 that you’d like to share, send it to Jessica@inman.com and Inman News will consider it for publication.

***

What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×