Silicon Valley Thoughts Anne Hansen talks about Real Estate, Home Ownership, and life

2009 CRYSTAL BALL REAL ESTATE PREDICTIONS

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:

1. Banks will loosen their very tight requirements around March. This will enable normal qualified buyers back into the market.
2. 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.
3. 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.
4. BUY, BUY, BUY and did I say BUY!
5. 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.
6. O’YES, interest rates…..drum role….they will stay under 6% for 2009. Go BUY!
7. Refinance, hmmmm, it’s still going to be tough if you don’t have 20% equity in your home.
8. 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.
9. 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.
10. 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!