FORECASTS: What’s in store for the Real Estate Market in 2009?
After perusing many articles relating to Real Estate and where it’s headed in 2009, it seems as though we are about to see real estate take a turn…there are pluses on the horizon…just look for that silver lining in the clouds and this is what you will see…
o Mortgage rates have hit close to a record 50 year low and have come down more than a percentage point since 2009.
o Economic forecasters at Wells Fargo predict the current recession is coming to an end and we should see a turn around during the second half of 2009.
o Wells Fargo’s senior economist, Scott Anderson, said pent-up demand in housing and low interest rates will lead the country out of recession once consumer confidence turns around — something that’s already underway – housing is about to turn a corner…moving us out of recession.
o Lawrence Yun, Chief Economist for the National Association of Realtors, has estimated that 500,000 re-sales could be stimulated by a one point drop in rates like we’ve just seen.
o Yun believes that, even with higher unemployment, there is a huge pent up demand to buy houses in many parts of the country — especially first time purchasers who see prices at 2003 and 2004 levels.
o Do the math…those bargain prices + rock bottom mortgage rates + thousands of potential buyers in the coming months may well = what are you waiting for? This is about as good as it gets!
o We can already see the signs of increases in markets flooded with foreclosures, REO and short sales dominate local real estate listings.
o Extreme example of this: Detroit – the single hardest hit market of the decade in the U.S.
o Detroit has been the epicenter of a regional economic downturn for years
o Detroit has racked up a 47 percent increase in home sales this year, compared with 2007.
o It’s not surprising that a lot of those sales were REO; BUT How else can the turnaround process begin?
It’s all in the silver lining….
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