By After two solid years of unmitigated distress in the real estate market, 2009 gave us some positive signs that we’ve seen the worst of it and that, while it’ll be slow, recovery has started. It was the year in which prices seem to have hit bottom and began to stabilize.
But what’s coming in 2010?
One of the biggest stories of 2009 was the Federal home buyer’s tax credit. The credit likely spurred the real estate market along, as buyers were anxious to take advantage of it. But the credit’s been expanded, and it now has a benefit to current homebuyers, should they choose to move up to a higher-priced home. With many of those homes at prices that are, comparatively, very low, 2010 could be just the time to make the move.
2010 could well show marked improvements as people clamor to take advantage of the credit before it expires in the Spring. Though small increases have been seen in mortgage interest rates, they are still at historically low levels. There is wide speculation, however, that these rates are nearing their end. With heightened demand from buyers and housing inventory on the decline, 2010 could very well be THE time to buy.
There could be great news for sellers, as well. While it’s not likely that we’ll ever return to the feverish seller’s market of 2005 & 2006, increased buyer demand will likely help to ease the losses that many sellers have taken in the past couple of years. It’s probable that many neighborhoods will start to see some increases in their prices. These gains will be more reflective of actual worth — numbers based in reality — as opposed to the artificially-created sales figures of the early 2000s.
It’s important to note that, as a nation, we’re not out of the woods just yet. But the end of 2009 gave us many signs that its edge is near. At Intero, we look forward to making the journey toward recovery with you.
Happy New Year, and the best to you in 2010.
