I've been in real estate long enough to make some predictions based upon my experience in the business, and trends I've come across.  The predictions are not so much based upon sentiment or what I want it to be, but in rising market times, falling sales prices, and other ominious growing trends.  This year in retrospect will most probably go down as a transition year.  2008 will be viewed down the road as a year of great change, and big movements.  Most of us in real estate started to see changes in property values, lower prices due to high volumes of distress sales, and high fuel costs that have recently just ebbed.  Could 2008 have been a major turning point in the way we live, invest and prioritize our needs?  I think so.  The extremes this year have been so big, so dramatic, and life changing that there are many lessons that can be learned if you paid attention to the events.  Here are some thoughts and observations I have made for myself.  I would love to hear your thoughts.

Some of My 2009 Real Estate Predictions: 

• 2009 will be a turn around year.  Change will be dramatic.
• Individuals will be more frugal. Mid range prices will rule.
• Insulation, heating, cooling, and environmentally friendly will matter.
• Price will continue to drive the market.
• Location, location will be a priority.  Short commutes, convenient, best schools.
• Fewer home sales including a drop in the sales of foreclosures.
• There will less emphasis on luxury, and more on practicality.
• Luxury home foreclosures increase dramatically due to Alt - A resets.
• Smaller - energy efficient homes with will be in demand.
• The luxury end of the market will have the greatest corrections in price.
• Condo and town home markets may be the last to recover.
• Second home markets will suffer - due to financial necessity of individual's relocation of assets and financial priorities.
• Builders will build less spec homes.
• Commercial real estate problems will replace residential.
• Loans and credit will be harder to obtain.
• Appraisals will rule.
• Less buyers qualifying due to credit issues (Credit card debt, slow pays)
• Fewer buyers due to bankruptcies, and foreclosure - damaged credit.
• Foreclosures will be sold in bulk lots at deep discounts.
• Absolute auctions will mark the bottom and beginning of the upturn.
• The real estate market will start to bottom in the later 3^rd quarter, and 4^th quarter of 2009.
• Real estate listed inventory in single family homes in many areas will start to level out mid 2009, and gradually decline.
• Buyers will need 20% down - must have best credit scores.
• Selling commissions will increase.
• The numbers of real estate agents and brokerages will free fall.
• Mortgage rates will initially decrease, but start to rise.
• Unemployment will peak in the 3^rd quarter 2009.
• Luxury autos out - practical fuel efficient cars in.