Only fools try to predict the future.
So, here goes:
- 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”.
- 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?
- 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.
- 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.