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Housing Market Slump in 2010?

By
Real Estate Agent with Kendall Haney Realty Group

Well apparently our economic recovery is not as good as we thought it was going to be in 2010.  According to various news reports it is predicted that in 2010 there will be ... brace yourself ... another drop in the market of 5 to 10 per cent.

The 5 to 10% figure comes from Moody Economic while Fiserv is predicting a drop of 11.3% of home prices in the next year.  It is really going to become more of a buyer's market with all of this.

Among the factors that are influencing these forecasts is that many analysts believe that there is a shadow market looming out there that will bring the market down even further.  The foreclosures that aren't on the market yet, the short sales that are coming, the possibility of even more homes going into foreclosure in the coming months, etc.

So keep the listings but it sounds like we need to be working with more and more buyers in the future.

One glimmer of hope ... of the 100 markets surveyed only Pittsburgh showed a growth!

Posted by

 

Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Hi Dana. I think we are past the half way point in the recession, but many markets you are right, still will lose more value in 2010. Watch the jobs numbers. That is a key indicator.

Dec 26, 2009 02:04 AM
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

I also think rising interest rates will put downward pressure on housing prices.

Dec 26, 2009 02:22 AM
John Pusa
Glendale, CA

Hi Dana,

Thank you for sharing a very helpful post. Merry Christmas and Happy Holidays!

John Pusa

Dec 26, 2009 03:17 AM
Anonymous
Samuel Pharris

Healthy housing market has to depend on jobs.  The Bush tax cuts due to expire soon and of course obamanomics is killing any recovery possible.  It literally takes years for any housing rebound in a double dip recession that many economists are talking about now.  Im sure pockets of some good housing market news, but, not much i can see.  Even the very wealthy are taking it in the shorts as many are upside down with no equity left after housing balloon popped.  Im a conservative and try to see the positives.  But, we need to be realitsts.  Obama is not going to the middle as Clinton did and and that is very bad news for everyone.  Lets hope the midterm election will help kick out the dems who are killing up and put some good conservatives in that will spur job growth with tax cuts, decrease in size and scope of govt intrusion, and budget cutting.  Lets hope for this otherwise its bad.  There will be half way thru the recession.

Aug 17, 2010 12:24 PM
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