Colleen Kulikowski's blog on "Help My Crystal Ball is Cloudy" asks some interesting questions. Are we to try and predict which housing type will be hot?  Perhaps by taking a different view of the market, predicting which pins are hot and which ones are not is too risky. The huge amounts of reverse Condo conversions is an indicator that people do not want to pay high maintaince fees over the time of ownership. Same could be said for single family homes, mowing the grass, the house repairs are not for everyone either. Townhouses have sprung up like spring weeds everywhere in Osceola County. Young Professionals look at them, as a entry into home ownership. Possibility because they have more active lifestyles. What has changed since the 80's is the lack of AFFORDABLE HOUSING. 

Remember that thing called a "Starter" Home?  Long before massive two stories and bi-levels, and huge square footage was "basic" there was this thing called a "starter" home. It was adequate space, for a young couple, track housing usually, and most of all AFFORDABLE. You could get into them for what would be be about $150K in todays dollars (50K then)        

Buyers  are like Bowling Pins are waiting and watching to see what comes down the Alley. If Builders were to build Affordable Housing Developments we would see what amounts to Deja Vu a retro look back to the 80's where despite interest rates on Mortgages at 16% buyers stood in lines with deposit checks in hand to purchase lower priced homes. A deal back then meant you got a 12.75% adjustable rate mortgage with a three year roll over!  Yes, we need to get those buyers off the fence. But presently they are quite confortable waiting and watching. They are nervous, and uncertain as are we all as to what will happen inthe Real Estate Market, Those of us who have been down this road before know these things come in cycles.

The New Year will bring with it, interest rate predictions, new job forecasts.  As home prices continue to "Adjust", Existing Home Sales will build momentum.  We all basically agree the hot market now is under $250K The dead zone appears to be at $350K. (Too much competition and not enough qualified buyers) From a buyers standpoint a 350K mortgage could be a scary undertaking. (huge monthly payments) Buyers are speaking...but their demands are falling on deaf ears.

What about all these 100% financing deals? Wow, we have a lot of buyers looking to finance 100%.  Loan packages have ceretainly evolved.  They buyers are there-but their ability has been diminished. 

"Home sale Statsitics will be released later today. Analysts are predicting a continuation inthe downward trend. Prices are down 13% from last year, and 16% since June. The analysts blame higher interets rates, and lack of demand." According to the news this morning. 

I think the groups to watch are professional women and Generation X-ers.  They are making noticable gains in strength.  As for my crystal ball... I got 142 when I used it for bowling! Keep Your ears to the ground and your sellers grounded and you will prosper!