Real Estate

Things are changing in the real estate market, and they’re changing fast.  A recent article in the U.S. News World Report outlined 10 things everyone must know in 2010 in regards to real estate.  While we didn’t agree with all ten being extremely important, we picked out eight that we think you should know.  From price reductions to rising mortgages, the 8 trends to look for in 2010 are shown below.

1. Bottom-line prices: Will prices steady in 2010?  According to Mark Zandi, the chief economist at Economy.com, they will.  Zandi expects home prices to bottom out in the third quarter of 2010, and slowly begin to balance out in early 2011.

2. The rise of mortgage delinquencies: As much as we’d like to say the economy is getting better, things are going to get a little worse first.  With unemployment at roughly 10% and climbing,  more and more people aren’t going to be able to pay their mortgages.

3. High end foreclosures: Those who fought off foreclosures in 2009 with prime mortgages may finally lose out in 2010.  When these mortgages fail,  houses at higher price points may become available in more desired neighborhoods, often times at more desirable prices.

4. Soaring Mortgage Rates: The concern over government deficits  has led to a lack of trust in the mortgage industry.  According to Mike Larson of Weiss Research, mortgage rates could approach 6% by the end of 2010.

5. The Buyers Market Remains: The market will continue to improve for buyers.  Between foreclosures, a relative decrease in prices, and sellers looking to sell quickly in order to buy, things will continue to improve for buyers in 2010.

6. Rising Lending Requirements: FHA loans may become a little harder to come by.  The department of housing may be raising up-front cash requirements, boosting minimum credit scores, and perhaps charging more for insurance premiums in order to combat broken mortgages.

7. Tax credit still available: We have a video that explains it all. “Tax Credit Explained.“

8. Things go mobile: Mobile applications allow buyers to find handy information on the spot that wasn’t previously available.  Mobile applications such as the  ”zillow app” allow more and more information to be accessed and analyzed  by homebuyers on the spot.

We hope these 8 trends will keep you on your toes in 2010.  We just wrote another post a few weeks back that can help you too.  It’s titled “7 Tips for House Hunting in 2010.”  We appreciate your support and we’d love to help you out with anything real estate related.  You’ve got questions, we’ve got answers.  Leave a comment below with anything you’d like to share that we might be missing out on!


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