What’s in Store for 2012?

By
Real Estate Agent with Starlight Realty Certified REO & Short Sale Specialist

Only fools try to predict the future.

So, here goes:

  1. Interest rates will stay low. Not exactly going out on a limb here—the Federal Reserve itself calls for the Fed Funds rate to stay low “at least through mid-2013”.
  2. Big banks will be in big trouble. Bank of America is already riddled with arrows as it tries to outrun angry investors, regulators, law enforcement officials, and class-action plaintiffs. JPMorgan Chase is facing similar threats. Anyone want to place bets on Citi and Wells Fargo?
  3. Home prices will keep dropping. Lots of company on this prediction. The question is: How far and how fast? That depends largely on the much-feared shadow inventory—and how much of it hits the market.
  4. Short sales will increase. This conviction is also shared by many observers. Again, the question is how much? Some say we’ll see half a million short sales before year’s end. That would be a boon to the industry—and especially to those agents who’ve prepared. Hope that includes you.

Comments (2)

Jeff Jensen
The Federal Savings Bank/Lending in 50 states - Greenwich, CT

I hope all your predictions are not correct.  I certainly believe in the interest rate one.

Jan 04, 2012 08:59 AM
Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Evening

Thanks for the post and information. Have a great day.

Jan 04, 2012 09:46 AM