Tuesday, January 10, 2012
Can I just say, 2011 was not my favorite year....not at all. But it's in the books, and I'd say as a benchmark, we've got some good things to look forward to in 2012. So lets focus on real estate!
1. We have historically low interest rates. If you're thinking of buying or refinancing - do it!
2. Nationally, home prices should be stabilizing. Locally we are expecting another dip in prices, because of our large dependence on government and our school district for employment.
3. The number of sales per year seems to have stabilized. We seem to have found the normal "set point" for the Mid-Willamette Valley.
4. We will see rising inventories as foreclosures again become more of a force in the marketplace.
5. Distressed properties will be an increasing part of the sales pie.
6. Improved Short Sale processes at the lender level will help even more families avoid foreclosure.
7. Homeownership rates will continue to fall, providing an opportunity for investors to purchase and provide housing for local families.
8. Foreign and domestic investors will make up about 25% of the buying market.
9. First time homebuyers will make up a signifcant portion of the market.
10. Buyers are still looking for a bargain; both in price and presentation.
All in all, we expect more of the same. In a way, that's good news. I'm often asked, "what is it going to take to turn this around?" My answer is always the same, "jobs." And that's what it is. No one is going to risk buying a home if they're worried about their job.
We're also advising our clients that given where we are, any real estate decision needs to be put in the context of about a 15 - 20 year plan. And No, I'm not kidding. It's really going to take that long.
Hopefully this gives you some insight into what to expect. We're here if you have questions, and we want to put the word out that we're available to come speak to any group who might want more insight into the Valley real estate market or the in's and out's of Short Sales.
Please don't hesitate to call. We're here to advise in all things real estate!
Happy New Year!