Case Shiller predicts that you will have lower (and fewer) offers on your house. Why? Because buyers won’t be able to afford the payments.
There will be an impact on home sales , perhaps as early as April 2010 (once the FEDERAL GOVERNMENT takes their hand out of the pot, and interest rates go up).
Home sales will flatten according to Karl E Case, who says, “Prices could drop 20%”.
RealtyTrac reports that 3 million homes are expected to be foreclosed on in 2010, up from the 2.8 million foreclosure properties taken over by lenders in 2009. “January foreclosure numbers are exhibiting a pattern very similar to a year ago: a double-digit percentage jump in December foreclosure activity followed by a 10 percent drop in January. If history repeats itself we will see a surge in the numbers over the next few months as lenders foreclose on delinquent loans where neither the existing loan modification programs or the new short sale and deed-in-lieu of foreclosure alternatives works.”
Expert opinions and forecasts for the housing market vary. If you missed the January 2010 MiamiRealEstateCafe Real Estate Forecast for 2010 you can see it here.
JPMorgan Chase economist, Michael Ferioli, believes housing prices will flatten.
Case Shiller predicts that it will take 3 years or more for the housing market to turn around – and three years for housing prices to fully recover from the current downturn. Case Shiller Future Pricesfor the Miami Area shows prices falling after April 2010, and projects that Miami will hit the bottom of the market in February 2011. Although home prices are near what they were in 2003, Case Shiller predicts that Miami home prices will not rebound to the recent peak before 2013 despite Standard and Poors showing an upward trend in their February 23rd report of the S&P/Case-Shiller Home Price Indices.
Business Week suggests that we may already be on our way out of the worst depression since 1930, with housing prices rising over the past eight months in 20 US cities.
EWM Realtors in South Florida have seen a notable increase in residential home sales since the start of 2010. Compelling pricing and buyers jockeying to take advantage of the current market have sparked an increase in home sales in the first two months of 2010. If you are looking to buy or sell real estate, please call us at 305-793-1365. or send us a note here.