WHAT WILL 2010 BRING?

Real estate review and predictions: What follows a decade of boom and bust?

By Renae MerleWashington Post Staff Writer Saturday, January 2, 2010


The U.S. housing market has been in a slump for nearly four years. Home prices have fallen 30 percent since reaching their peak in 2006, leaving nearly a quarter of borrowers owing more than their homes are worth. Millions of homeowners have fallen into foreclosure.



So what will 2010 bring? Many economists expect to see a continuation of the tentative signs of healing found in the housing market in 2009.
Reduced prices, low interest rates and a tax credit for first-time home buyers helped boost the market in 2009. The pickup in sales translated into a stabilization of prices in some parts of the country. In Northern Virginia, for example, median home prices bounced more than 11 percent in November compared with a year earlier. That could continue in 2010 as long as the economic rebound persists, economists said. But risks remain, including an expected increase in mortgage rates later this year and rising unemployment. "The unemployment rate is a big concern that could slow the recovery process," said Lawrence Yun, chief economist for the National Association of Realtors.
Will home sales continue to rebound in 2010?
Economists largely agree that the rebound in home sales that began in 2009 will continue in the new year. The National Association of Realtors predicts that sales will rise 10 percent this year, after a 5 percent increase in 2009.
The rebound could be even stronger in the market for new homes. After reaching the lowest inventory levels since the 1970s, there are likely to be about 500,000 new homes sold in 2010, an increase of about 30 percent from last year, said Dave Crowe, chief economist for the National Association of Home Builders.
But that's still far from the 1 million new-home sales that occur in a normal year, Crowe said. "The rate will appear rather impressive due to the rather dismal levels we achieved in 2009," he said.



Nancy's perspective...

As we will more than likely see an increase of homes in default in 2010, we hope homeowners will educate themselves on what their options are; whether it be a loan modification through the HAMP program, or understanding the advantages of a short sale over a foreclosure. Allowing your home to go into foreclosure before considering the long term ramifications can be detrimental to a person's credit for 5-7 years. A Short Sale will only affect a person's credit for up to two years. Please feel free to go to our website at http://www.cookteamonline.com/ and take a look at the 'Short Sale Application' tab to see if you qualify for a short sale. We would be happy to talk to you about your options if you are struggling to make your housepayments.



2010 will be a challenging year for many of us. As we are challenged to make tough decisions it's important to put things into perspective and focus on what truly are the most important things in life... family, friends, health and a God who will never leave us as we are!



Happy 2010 to all!