The real estate market appears to have either bottomed out, or neared the bottom in terms of pricing, length of time sales take, and units sold. While we still appear to be far from it becoming another Seller's Market, the days of the buyer having such a big advantage seem to probably be near the end. Some of the reasons include:
1) Mortgage Interest Rates are still at or near historic lows. Eventually the Fed will once again ease up on interest rates, permitting them to gradually increase. They will probably state that they are doing it to stem inflation, and that the time is now right. That is probably political economic talk, but remember the next Federal election is over a year away!
2) Housing prices have dropped dramatically in many markets, causing additional buyer interest.
3) Eventually, the recession will ease somewhat, and the job market will improve. First, there will be more part-time positions available, followed by more full-time employment. That will mean that there will be more potential buyers.
4) Many are predicting that by the middle of 2010, the economy will begin to show recovery. That should cause consumer confidence.
5) The stock market went up over 15% in the 3rd Quarter. Most do NOT believe that this quarter will show the same increase, but if consumers begin to feel more confident, historically the real estate market benefits.
6) Many believe that the Federal Government will extend the First Time Buyers Credit. If that occurs, the housing market will benefit also.
While none of us have "crystal balls," many of us believe that 2010 will be a far better year for real estate than 2009 was.
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