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End Of 2009 & 2010 Future Predictions
November 15th, 2009 1:29 PM

Well another year is almost over. It's been a good year overall considering the last few years of turmoil in the economy and the real estate market. There is a lot of debate of where 2010 lies/is heading for our real estate market. I feel we have probably hit the bottom already in 2009 as far as prices go. The deals on single family homes and multi-unit properties are still available but the great steals at unbelievable prices are mostly gone. Prices/homes once available at the end of 2008 and up through mid-2009 have been bought for the most part and moved into by first time buyers, rented out by investors, or renovated and resold. The bidding wars has gotten worse for first time buyers who have to compete with a sleuth of investors/cash buyers/flippers in the market. Prices have moved up a bit in the $200,000 and below range in many areas of the region. I think the higher-end market still has room to come down more especially with lending tightening up more and more. Although there is a shadow inventory of foreclosed homes that have not hit the market it appears the sellers have figured out that over saturating the market did not fare well and drove prices down fast. They now typically release the repos slowly and this has caused prices to go up about $20,000 in different areas as supply is low, demand is high, and multiple offers on properties has become even more common place than 2008. The $8,000 tax credit helped fuel demand this year and with the extension through 4-30-10 next year it should continue to do so. Mostly the only private sellers in the market are either doing short sales, fix and flips, bought their home years ago and still have the equity to sale now, or own their home or rental free and clear.

It is definitely a great time to buy with the lower prices, % rates in the high 4s to low 5s, and the tax credit perks. The catch is that for the most part it is not a buyer's market and buyers have to deal with heavy competition.

I speculate the residential real estate market has seen its worst days already but the commercial real estate market is set to hit the fan these next two years as residential did from 2007-2009.

I can't wait to see what 2010 holds!


Posted in:General
Posted by Reginald Jackson on November 15th, 2009 1:29 PMPost a Comment

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