Yes, we know that we’re are more than half way through 2009 but that doesn’t mean that we can’t toss up a trends list. We got this trends list while listening to the energetic, amusing and darn smart Carole Rodoni. While some of these items may still factual, it remains a good idea to reflect.
1- Foreclosures will again rise especially in California, Nevada and Florida.
2- Prices will continue to decline probably another 6-10% especially here in the Golden State but also in Nevada, Arizona and Florida.
3- Sales will increase in foreclosure and first time home buyer areas but higher end will see sales decline due to loss of wealth and loss of jobs in this buyer pool.
4- Commercial real estate will begin to slide and loans will be hard to get. Ain’t it the truth.
5- Interest rates will be low but need to qualify still tough – 20% down and FICO scores of 720 will be needed especially for jumbo’s.
6- Lower interest rates will only be for conforming $417,000 and below.
7- New home prices will continue to decline.
8- The bottom of the real estate market will depend by area – some will bottom by the end of 2009 going back to 2000 prices and in the more distressed areas the bottom will not be reached until 2011 with prices going back to 199-1998 prices.
9- Still, it will be a great year for first time buyers – more affordability, low interest rates – the key is qualifying.