Real Estate Prediction

My Real Estate Prediction For 2010!

We all are anxious about our present as well as our future. Wouldn’t it be nice to have that crystal ball that would give us some clues as to what our economy will look like next year and beyond! Since no reliable indicator exists, we can only depend on the so called “pundits” who profess to know more than most, but their results are mixed. I am going to take a stab at my own predictions of next year’s real estate market with the risk of missing the mark a bit and having you, the reader, remind me of my well intended attempt! My picture of next year’s market is based on many conversations with banks, appraisers, home owners, buyers and sellers. I have 32 years as a full-time Realtor providing a good base for my insights into 2010’s housing environment. So here goes:

I believe that our economy is not out of the woods, but it is gaining some footing. Americans are feeling that there is more stability in the housing market and that the bottom may be behind us. I’ve always said perception becomes reality. Therefore, I expect next year’s market to pick up momentum as to the amount of sales, but I see continued foreclosures holding prices at current levels.

Buyers are increasingly more demanding and will continue to place a premium price on homes that are in move-in condition with 2010 decorating. Homes that are tired or in poor condition will suffer in value due to high competition. There may be a difference of 30% between the former to the latter.

I see interest rates increasing very slightly as rates probably have bottomed and will rise 1% to 6% for most of the year. This will not affect sales greatly as prices have become much more affordable to the average buyer. I believe there is a back log of purchasers who have put off their purchase due to the unstable economy. This will make up for any interest rate gain next year.

I do believe there will be one more waive of foreclosures for various reasons, including unemployment. Workers will probably experience another tough year for hiring which may push some homeowners to losing their homes. This again will keep prices from rising for the next year or so. Once we begin to reduce inventory, then prices will begin a slow rise.

I do see inflation rearing its head in 3-5 years, which will cause a steady increase at that time in real estate values. Therefore, home ownership will always be a good hedge against any inflation in the economy.

In summary, if you are trying to time the market hoping values will rise, and putting off plans to make a move to improve your lives…don’t! You may be waiting for some time and your circumstances may change to make it more difficult to move in the future. Have a Realtor view your home to offer tips on how to prepare your home for next year’s buyer’s expectations. Fix any defects if you have time. Price your home realistically so that the home does not linger on the market.

In closing, if I miss the mark, just know I am another “pundit” trying to offer my best guess to a very complicated market place!

 Bruce Nemovitz is a Senior Real Estate Specialist, as well as Certified Senior Advisor. Bruce has sold residential homes in the four county Milwaukee-Metro areas for 30 years. He has just published a book called “Moving in the Right Direction”, a Senior’s Guide to Moving and Downsizing.  He works with his wife Jeanne  at Realty Executives Integrity.

Please feel free to call Bruce or Jeanne with any real estate questions you may have at 262-242-6177, or email at Bruce@BrucesTeam.com. You can go to their website at www.brucesteam.com and view the many articles and important information related to moving and downsizing!