Not to burst anyone's bubble,
but I think the Real Estate market is going to get
worse.
I'm not trying to be pessimistic, and yes I've had
my morning coffee. But the current environment with retail residential
resales is likely to get worse in the next few years for the following three
reasons:
- Rising interest rates - We have had so much money
creation, that higher rates (remember 1982?), are more than likely.
- The Federal Tax credit incentive will expire - The $8,000 Federal Homebuyers Tax Credit for first time
homebuyers will expire, that is a BIG incentive right now motivating a lot of
buyers for the lower end of the market.
- The economy will not improve that much, if at all - The
economic forecast according to the FED is
not expected to improve that much by next year at this time, in fact many
experts expect it to get worse.
There are of course a couple ways to plan for
this.
Change careers now - Although what
many agents will do I don't know, it's not like there are a plethora of
available high paying jobs available right
now.
OR
Impress upon potential
buyers and sellers that this year is probably the best time they are
going to see in a VERY LONG time to buy of sell real estate.
;)
;)
Not to mention there is still a giant tidal wave of foreclosures coming. At least 1/2 the properties currently listed as short sales or going through loan modification will ultimately become bank REOs.