What a year to be in real estate! I think I am one of the last Realtors left! The last 18 months have seen an exodus of real estate agents from the business, and the ones who remain are truly the ones you want to be working with. This is a professional’s market, and now more than ever, you need a great Realtor to help you with your real estate needs. But what is in store for real estate in 2010?
Next year, we can expect somewhat of a roller-coaster ride for real estate, in general. We have a lot of good and a lot of not-so-good on the periphery, so how can you manage yourself and your home and investments as good as possible? Or will 2010 finally be the year that you jump into the real estate market for good? Let’s look at the good and the bad, and discuss both relative to each market segment out there (buyers, sellers, investors, etc).
First, the bad:
2010 will feature more of the same from bank foreclosures and short sales. In their most recent statistics, according to NAR about 25% of all transactions in America right now are distressed properties. Obviously things are different here in San Diego, where that number feels like 100%, but really is closer to about 2/3 of all sales, and it changes from area to area throughout the county. Because of a lack of cohesion and cooperation on the part of the banks and also on the part of government regulation, getting anything done with a bank in 2009 was (and is) pretty darn difficult. True, systems are in place and getting further refined, and more people are getting employed to take on the workload at the banks to get used to dealing with so many short sales, however, this has been a work in progress for the past 3 years and will continue to be so for 2010 and beyond.
In fact, there were a record number of Notice of Defaults (NOD’s) posted this last month, and with loan modifications becoming less and less apparent (meaning the banks just aren’t doing very many at all of these) expect there to be a consistent flow of more and more short sales and foreclosures. Furthermore, there are several ALT-A loans (what people have been calling the next wave of bad loans) where the borrowers of these types of loans will see their loan readjust to an unaffordable amount, causing further increasing pressure on defaults and foreclosures. More than anything, doing a short sale has in my opinion become an acceptable social construction. Doing a short sale is now commonplace and not as stigmatized as is has been for the past few years; the same goes for foreclosure as well. A vast amount people have gotten involved in a bad loan or a bad investment that there is no hesitation anymore in holding on to the home.