Ten real estate predictions for 2009
NEW YORK - Dec. 18, 2008 - 2009 is likely to be a year of continuing adjustment to a changing real estate marketplace. Prepare yourself and your business with these predictions from HGTV's FrontDoor.com Web site.
· Sellers will continue to face falling home values in the new year because they'll be competing with banks and builders who are slashing prices to sell off the still-huge inventory of foreclosures and new homes.
· The Obama administration will act on its plan to crack down on abusive lending practices.
· Mortgage holders in danger of losing their homes will receive more assistance from a variety of programs since the Senate's Joint Economic Committee has predicted two million foreclosures in 2009.
· Banks' restructuring should bring increasing calm, making loan modifications and short sales easier to obtain. Eventually this will lead to a decrease in the number of bank-owned properties on the market.
· Mortgage applications will continue to receive a comprehensive review, requiring borrowers to provide extensive income and debt documentation. Those with the best credit will get the best rates.
· The foreclosure crisis has created wiser consumers, with a deeper understanding of real estate, mortgages and credit, enabling better decision-making going forward.
· Green is good with increasing numbers of buyers opting for smaller homes that are within walking distance of school and work.
· Buyers and sellers will be more and more tech savvy, relying on tools like video, webcasts, and mobile search. Consumers and practitioners will benefit from being ahead of the curve.
· Prices will be low as will interest rates, creating great buying opportunities, and likely, inspiring reluctant buyers to make their move.
· The recession will end and buyers will regain confidence in the market.
Source: Frontdoor.com (12/03/2008)