2010 Turn Around Yes or No

Real Estate Broker/Owner with Mills Realty
Home sales and new home construction, at least according to the Fed, are likely to stimulate the economy in 2010. Feds are predicting that housing sales will jump by 11 percent, even in the face of a slow recovery for the economy as a whole. With home sales surging for the second month in a row in October, climbing to the highest level in over two years as first-time buyers rushed to take advantage of what was expected to be an expiring tax credit. Home sales nationwide are now up nearly 36 percent from their bottom in January. I find all this very exciting however I am not sure if real estate can turn that quickly on its own without another government handout. http://bit.ly/6qlNpJ http://bit.ly/7dxpJX

Comments (6)

Sara Homan
Coldwell Banker Ellison Realty 352-209-4044 - Ocala, FL
Realtor, Homes, Farms & 55+

Personally I see more buyers and more sales but the dollar amount is still very low.  Not many regular residential sales are moving, I think the media is really puffing smoke at the American people so their failed choice at the polls last year won't look so bad.

In our area the foreclosures reign supreme and yet they have slowed down since the prices have risen.

Love your horse pic!

Nov 26, 2009 11:58 PM
Associate Broker Falmouth MA Cape Cod Heath Coker
https://teamcoker.robertpaul.com - Falmouth, MA
Heath Coker Berkshire Hathaway HS Robert Paul Prop

Rates usually go up in the second year of a president. That could affect things.

Nov 27, 2009 12:04 AM
Alexandria Virginia
Featuring Susan Craft, CRS, REALTORĀ® - McEnearney Associates - Alexandria, VA
Real Estate Editor

The government has done too much, and we will pay the consequences.  Whenever a government monkeys around with free markets, the end result is always horrible.  Moreover, when governments start giving people money to buy cars and houses, we call that Socialism.  It doesn't work, and it always ends with violence and tears.  We might be happy as pigs in mud now, but we'll regret it down the road.  Instead of lobbying for the buyer credit, NAR should have been lobbying to stop the billions in tax credits the builders are getting . . . because now they are going to build more homes . . . that we do not need.

Nov 27, 2009 12:10 AM
John Neibich
Home Savings of America - Prescott, AZ

We've probably hit bottom, nationally, but nowhere is it promised that there is a bounce coming in prices.

Home prices are a function of how much Joe Borrower can qualify for based on his income, and with the Stated Income programs gone, Joe can get a monthly payment of somewhere around 40-50% of his monthly income, so long as he didn't rush out and buy a CashforClunkers Prius, or has lots of other debts.

So, until incomes begin to rise home prices are not going up. And incomes won't rise until the job market begins creating jobs which we actually have fewer jobs today than we did 10 years ago (first time in US history), and the period of 2001 to 2008 we lost over 2 million private sector jobs. In 2009 we've lost another 3 million jobs.

Stop blaming politicians for your problems, and go out make sales, hire help, and spend money and get the economy moving.

Nov 27, 2009 01:05 AM
Mike Morgan
Internet Marketing for Real Estate Agents and Brokers - Jensen Beach, FL

We still must unravel a false economy and debt that we cannot even afford the interest on. 

Nov 27, 2009 02:30 AM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

George, We are in a policy driven economy. When the Fed forecasts something. They can MAKE it happen. 

Nov 27, 2009 06:58 AM