What do I predict for 2010?Last year was definitely a strange year! Consumer confidence was iffy, when there was confidence with the buying public, many of them were turned down for mortgages even after being 'pre-approved' prior to purchasing a home. Lenders were very conservative in their lending, so it would seem. Buyers who might have previously been good to go, were turned down for financing. The last quarter of 2009 was definitely a better period, more people were looking, lenders were loosening the purse strings, people were generally a little more optimistic, after all, they made it almost to the end of the year and still had their jobs. I am confident that 2010 is going to be a better year for the real estate market. I know, that's a no-brainer. How could it possibly be any worse than 2009? Not only will it be better, I think it will be even better than 2008, perhaps 2007. The number of calls I am receiving, the number of people looking at what is normally a less busy time of year, are all signs that we are heading into a new year with renewed confidence, even over confidence, and this coupled with historically low interest rates, well, it's a great combination. How long will this new 'bubble' last, a few years perhaps. It would be prudent to not borrow the maximum these rates allow, but to go on the conservative side of borrowing, for example, if 3.5% interest rates enable you to buy a $ 200,000 home, I would err on the side of caution and buy a property for say 25% less than that, this way, when rates eventually go up, and this is inevitable, you won't be caught off guard when it's time to renew your mortgage, and thus avoiding the potential for your becoming house poor, or even worse, lose your home because you can't afford the revised mortgage payments. It is still better to own than rent, so if you've been sitting on the edge wondering if you should buy, it is an EXCELLENT time. Housing prices are stable, and should this be as good as year as I predict, these prices will likely go up.... Call me if you are one of those confident people who want to buy a property this year, or if you want to sell your home. Market Evaluations are still free! Kevin Stacey 902.698.0885 Cell
Posted by Kevin Stacey
on January 12, 2010
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