2009 PREDICTIONS

Ten real estate predictions for 2009 is likely to be a year of continuing adjustment to a changing real estate marketplace. Prepare yourself and your business.
• Sellers will continue to face falling home values in the new year because they’ll be competing with banks and builders who are slashing prices to sell off the still-huge inventory of foreclosures and new homes.
• The Obama administration will act on its plan to crack down on abusive lending practices.
• Mortgage holders in danger of losing their homes will receive more assistance from a variety of programs since the Senate’s Joint Economic Committee has predicted two million foreclosures in 2009.
• Banks’ restructuring should bring increasing calm, making loan modifications and short sales easier to obtain. Eventually this will lead to a decrease in the number of bank-owned properties on the market.
• Mortgage applications will continue to receive a comprehensive review, requiring borrowers to provide extensive income and debt documentation. Those with the best credit will get the best rates.
• The foreclosure crisis has created wiser consumers, with a deeper understanding of real estate, mortgages and credit, enabling better decision-making going forward.
• Green is good with increasing numbers of buyers opting for smaller homes that are within walking distance of school and work.
• Buyers and sellers will be more and more tech savvy, relying on tools like video, webcasts, and mobile search. Consumers and practitioners will benefit from being ahead of the curve.
• Prices will be low as will interest rates, creating great buying opportunities, and likely, inspiring reluctant buyers to make their move.
• The recession will end and buyers will regain confidence in the market.