As 2011 arrives, I have been questioned often to provide an opinion on where the residential real estate market is headed. In responding, I am reminded of “The Great Karnak” from the Johnny Carson Show, as some uncertainty remains in the answer to this question.
2010 will be remembered as the tale of two halves. The first half exceeded all expectations with the benefits of the federal tax credits which contributed greatly to an increase in sales and closings. That activity proved unsustainable as the second half activity fell significantly. In the end, 2010 looked a lot like 2009 in terms of activity.
There is continued pressure on pricing as supply outweighs demand in many areas and price points. Most experts are indicating our pricing has returned to 2004 – 2005 levels. I remain optimistic that values will stabilize in 2011 as demand begins to return to the market.
On the positive side, it appears that the new congress has been met with consumer and business support and that the employment figures are responding. November and December employment figures showed strong gains. As the jobs sector improves, consumer confidence will improve and the housing market will certainly follow suit.
New construction is showing strong growth already. As widely anticipated, new homes will emerge first and it is my opinion that we are seeing that affect in the market now.
My forecast for 2011 – modest growth in sales and more stability in values. This might be your best opportunity if you are considering a move up to a larger home. It is widely believed that we are at the bottom of the value cycle. The experts also indicate interest rates will not fall lower than they are currently. The perfect blend of low prices and low rates with the anticipation both will rise might present the best opportunity to “time the market”.
If you or anyone you know is interested in discussing this golden opportunity, please call me. If you want to do a little research on your own, please visit my website at WWW.DebbieTWilliams.com where you will find active AND SOLD homes in your neighborhood. It’s a great way to get started.
Happy Holidays and Best Wishes for 2011!
