Welcome 2010!

2010 is here and it seems everyone is excited.

This is a good year to buy real estate, and I’m not the only one saying it. See the BusinessWeek article below. Yes, it’s a catchy (controversial?) title. Like it or not, the media influences the general public and the herd mentality eventually kicks in. In 2009 the real estate industry saw many fence-sitters (leaders) climb down and buy a home, this (among government measures) created stability and caused multiple offers to return. The scramble to buy at the low was appearing to be here.

Now we enter 2010, the media is writing more favorably on the real estate market, the masses are beginning to believe it is finally safe to buy without “losing money.” And there are still deals to be had. Plus, as the article points out, interest rates are incredibly favorable. The catch, lenders are still tight with their money, they will loan money to those with money, so save for your down payment.

If you purchased in 2009, congratulations!! You timed the market well and likely bought at the “bottom.” If you didn’t buy yet did you miss the opportunity? Of course not! (Unless you were hoping to purchase in the sub-$400,000 price range).

Here is what I see for 2010 real estate in our area…

1. Price stability (already happening in most price categories, high-end should get there by year-end)

2. Increased short sales and faster approval cycles. Lenders have finally figured out how to streamline the process and also realized short sales are a good and viable solution.

3. Decreased quantity of REO/Bank Owned sales, increased quality. More short sale approvals equals fewer REO’s however they will still exist and will become more mainstream. Expect to see them across all communities (Willow Glen to Almaden to Los Gatos to Los Altos and beyond).

4. Great Move-Up Opportunities. Price stability in the lower end coupled with the still downward pressure in the high-end makes this a great move-up market.

If you would like data for a specific neighborhood email me and I’ll get it out to you right away.


If You Don't Buy a House Now, You're Stupid or Broke
Interest rates are at historic lows but cyclical trends suggest they will soon rise. Home buyers may never see such a chance again, writes Marc Roth

SOURCE LINK: http://www.businessweek.com/lifestyle/content/dec2009/bw2009127_753974.htm