2010 Real Estate Outlook
A new year and a fresh start, so what can we expect from the real estate market in the next year? There should be both good and bad news for 2010.
The extended first time buyer tax credit and the addition of the existing home buyer tax credit will definitely motivate buyers to take advantage of the savings from Uncle Sam. The question then becomes, "What is going to happen once the federal tax credit expires?" Mostly likely, real estate will slow some after the tax credit expires but will continue to rise due to the low interest rates and sales prices.
As for sellers, it continues to be a difficult time for sellers with housing prices flat and possibly even going slightly lower. Foreclosures are going to remain high, as well as short sales. Numerous foreclosures and short sales are the result of job losses.
While buyers have always demanded a steal, buyers will continue to push harder for a steal in 2010. Normally what happens in a housing recovery is that inventory eventually decreases to the point where supply and demand are in balance. While housing inventory has been declining, the continuous foreclosures, short sales and needs to sell a home continues upwards. New homes will continue to be limited and will mainly exist in areas where resale homes are limited.
2010 will most likely be remembered as the year the real estate industry began to turn back around, but we still have a way to go.
Are you considered about the value of your home or think you may need to consider a short sale, contact us today.
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