The real estate market is cyclical and will once again thrive – but when? In 2010, more than supply and demand influenced the market. Each time the market received a bit of good news, something happened. Tax credits ended, banks pulled back on lending and foreclosures stopped closing. Signs continue to point to a stabilizing and slowly improving economy. The market remains solid if not stellar and most economists predict a positive trend in 2011.* Billionaire Warren Buffett wrote March 2010 in his annual letter to the shareholders of his Berkshire Hathaway predicted increased demand for real estate in 2011. “Prices will remain far below ‘bubble’ levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits. Indeed, many families that couldn’t afford to buy an appropriate home a few years ago now find it well within their means.”
For our local real estate market in the Venice Florida areas, we saw a nominal increase, +6.35%, in the amount of homes sold in 2010 as compared to 2009 and a slight decrease, -1.56% in the average price a home sold for in 2010 as compared to 2009: 2691 single family homes sold in 2010 as compared to 2520 single family homes in 2009 and the average price of a single family home in 2010 was $205,946 as compared to $209,217 in 2009.
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