Biggest Trends for 2009
On Monday, the Women’s Council of Realtors had their California State Chapter meeting in Monterey at the Portola Hotel & Spa. Carol Rodini was the guest speaker and as usual she was fabulous. The title of her presentation was “What’s Ahead for this Market?” Below is Carol’s list of Biggest Trends for 2009, which I thought everyone would find interesting.
Foreclosures will continue to rise especially in California, Nevada, Arizona and Florida.
Prices will continue to decline probably another 6-10% especially in California, Nevada, Arizona and Florida.
Sales will increase in foreclosures and first time buyer area but higher end will see sales decline due to loss of wealth and loss of jobs in this buyer pool.
Commercial real estate will begin to slide and loans will be hard to get.
Interest rates will be low but the need to qualify will still be tough. Will need 20% down and FICO scores of 720 will be needed especially for jumbos.
Lower interest rates will only be for conforming $417,000 and below.
New home prices will continue to decline.
The bottom of the real estate market will depend by area. Some will bottom by the end of end of 2009 going back to 2000 prices and in the more distressed areas the bottom will not be reached until 2011 with prices going back to 1997-1998 prices.
Still, it will be a great year for first time buyers—more affordability, low interest rates—the key is qualifying.
