Real Estate Trends in 2010

Continued Buyer's Market Low prices and a large inventory of homes for buyers and low sales prices and fierce market competition for sellers continue in 2010. Fortunately, home sellers have many advantages over the foreclosure down the street. Today's homebuyers are looking for move-in ready homes, which most foreclosed homes are not. Preparing your home for sale, including cleaning, repairs, upgrades and staging will help your home stand out from the crowd. More Buyers Thanks to the $8,000 tax credit for new buyers, extended until April 30, 2010, expanded to include some existing homeowners, plus buyers with higher incomes, motivating current homeowners to trade up. More Foreclosures In an attempt help stabilize neighborhoods, Fannie Mae has come up with a potential solution to keep people in their homes by allowing some, losing their homes, to lease those properties back for up to a year. Stabilizing Home Values U.S. home values stabilizing nationally, but locally, many markets still have a ways to go. Lending Standards Tight In 2010, banks will continue to require extensive documentation and stellar credit from borrowers. Rising Mortgage Rates The Federal Reserve has kept mortgage rates at historic lows. However, rates are expected to jump as much as 1% after March 2010. Now is the time to take advantage. Construction Market In 2010 lenders are still reluctant to finance new construction projects for builders. Tricky Appraisal Rules The federal government passed the HVCC (rules that determine how appraisals should be made). Appraisals now take longer, and are often conducted by appraisers unfamiliar with the local market. The National Association of Realtors has called for a moratorium of the HVCC, but until this is resolved, expect delays in 2010. Smoother Short Sales In 2009, short sales, (seller's proceeds less than his mortgage debt), have been a slow and often unsuccessful process. In 2010, lenders and real estate professionals alike are working on ways to streamline the short-sale process. Cash Rules If you plan on financing a home purchase in 2010, be prepared for cash offer competition. Sellers and Banks typically accept these offers over those where loans are involved. To stand out from the competition, make your offer as attractive as possible.