As the New Year Approaches, We Take a Look Ahead at Expected Trends in Real Estate

There has been a lot of skepticism in the media and market in general about real estate and whether the current recession has hit us so hard that we might take a whole lot longer to recover than we thought. But the truth is that even though there has been a general hesitance for a lot of folks, the actual long term trend has been an upward one. With an increase of sales for the current year, many real estate agents are reporting the same expectation for 2011. A few other trends are also expected in the coming year that will contribute to a continued, albeit gradual, upward trend.

Low-Interest Rate Lock-In

Most people are misinformed about the real estate industry – and in their lack of knowledge will be too quick to just say “the real estate market is at its worst low”. However, when you look at the actual situation, you’ll quickly realize that contrary to that sometimes popular belief, the trends in residential and commercial property sales have been slowly and steadily improving. The great advantage we have going at the time is the fact that the government wants us to get into our own homes, stay in them and maybe even upgrade if it’s the right time for the right family. This means, among other concessions, a continued solid low-interest rate lock-in that will serve you for years, even well after the recession has hit the road.

Smaller, More Serious Buyer Pool

Buyer pools are at a near all-time low, with the situation in the American workplace as it is. Layoffs, downsizing and cost-cutting has changed the mind set of current homeowners once thinking of selling their existing home and upgrading to the next level. So now, when people are putting their homes on the market, especially properties worth $2 million and under, those homes are being picked up like hotcakes in a hot second by the relatively few buyers out there. Making it a somewhat ideal situation for sellers of this group, the current trend is about a 30% increase in sales from the previous year and moving on to the next year the same is expected to continue. While analysts don’t believe it will increase too much more, projected sales definitely mimic this trend.

Predictable Prices Here to Stay

With the economy on a see-saw and some analysts saying we’re in a double-dip recession while other still saying we’re not, one thing is for certain – the prices that we are seeing are here to stay at least for the next 12 to 24 months. That’s not to say that they won’t fluctuate a little, but the general trends have been of stability in prices and we don’t anticipate any major change there for at least a little while. What this means to you is that you can plan reasonably and if buying or selling a home is in your cards, you have the advantage of knowing what to expect. No one in this sort of economy can stand to go into the dark on real estate deals these days and every bit of predictability is paramount.

Things are changing and slowly, but surely, they’re changing for the better! We are shouting out a resounding ‘Hang in there!’ to our clients. Our confidence in the market isn’t going anywhere. Lock in the lowest interest rates we’ve seen in a long time. Seize the opportunity to buy as one of the few that can buy, or sell to those who are holding a pen in hand waiting to sign that check. Know that the future looks up!

By availing the several opportunities that do lie in the current situation, you can come out a winner and own the property of your dreams! Better yet, you can own the property that will allow you and your family to live comfortably, safely and with stability – for a long time to come!