The best part of 2009, will show up in 2010…
Realtors AND lenders who are still here, are smarter, more experienced (with all sorts of problems) and we are more humbled. This will help all of our clients!
2010 is going to be one amazing learning curve:
- Lendingis drastically changing each day. No more pre-approvals without the buyer committing to a lender. A lender cannot give you “real” numbers by law, until the buyer has giving all the 5 top financial criteria first. This will cut back on the unethical lenders who got us into this mess in the first place.
- Homes prices will continue to go down in less attractive areas and will rise in more desirable areas.
- Interest rates will stay very level in 2010. Remember when the news says. “INTEREST RATES will rise,” those are NOT the interest rates that effect mortgages. Those are the interest rates that effect credit cards, car buying and other consumer purchases. So go BUY!!!
- Sellers will need to listen to their experienced Realtors. If you read my blog of last year, please interview two Realtors . Selling homes is an art. Every Realtor is different and we all have our own style of marketing and negotiating.
- Buyers go BUY. Do your homework, use an excellent Realtor who really has your interest first. Trust your gut on that. The process of buying a home for the next few years will be tough but worth it. Patience is still the name of the game. And if you find the home, go buy it. Your Realtor will take good care of you, that’s our job!
Hmmmm.
Looking at my 27 January 2009 blog, I should have been a betting gal!
1. March yes, and slowly loosening throught the year.
2. Okay, I am $2K off the average, but we are only in April.
3. Dead, yes, dead but Donald Trump is still buying.
4. I will again say BUY, BUY and BUY!
5. Don’t sell, period. Well, unless you must.
6. Interest rates, do I see under 5%, WOW!
7. Still tough to refinance but some lenders are loosening to 90% loan-to-value.
8. As of last week, the Santa Clara County Board of Realtors said their membership was down 33%. Ouch!
9. Seller’s keep interviewing seasoned Realtors, the seasoned ones get what is going on. And your interests, not their pockets books, are their committment.
10. Might I say anything more, my Washington Mutual has become Chase….
And yes, my hair is turning grey but now it’s not only on my temples it’s in the front of my head. Not too pretty. Keep hanging on and read about positive things.
I am not a betting gal but I am going to look into my crystal ball (I actually have one) and try to predict the real estate market for Silicon Valley in 2009:
- Banks will loosen their very tight requirements around March. This will enable normal qualified buyers back into the market.
- The inventory in Silicon Valley will increase starting around June, especially in the $450k and under market. This will be the main current that will start moving the entire real estate market.
- After we all have tightened our belts and budgets, and realized that we need to start living IN our means, the higher markets ($900K +) will be dead. Of course, you will always have the super rich that will not be effected by any recession.
- BUY, BUY, BUY and did I say BUY!
- I know you won’t agree with me on this (especially Realtors) but don’t ever sell if you don’t need to. I know this is out of the question for most but try to hold on to your property.
- O’YES, interest rates…..drum role….they will stay under 6% for 2009. Go BUY!
- Refinance, hmmmm, it’s still going to be tough if you don’t have 20% equity in your home.
- Realtors….will be leaving the field to wait on tables. I think we will lose 30% of real estate agents. Keep reading those attitude books and walk your farms.
- Sellers, interview at least 2 Realtors who have been in the business at least 15 years or more. And listen to them, they know what they are saying. This is our profession.
- Lenders will keep getting consolidated and eaten up by the biggies. B of A, Chase and Wells will be the standing crowd at the end of 2009.
The only thing I am clear about in my next prediction is HOLD ON, it’s going to be quite a bumpy ride. My hair is quickly turning grey!
Talk later!