Friday, December 19, 2008

'Tis the season for bold predictions...

As customary, we are now in the part of the year where many will make predictions on what happens next year. While I don't make such bold predictions myself, I do like to look at real estate related reports to see the takes of others.

This is the first such bold prediction post I've seen so far. It comes from

The link to that site is here, and below I'll copy a shorter version from another site which just so happens to be the National REALTOR Association website.

* Sellers will continue to face falling home values in the new year because they’ll be competing with banks and builders who are slashing prices to sell off the still-huge inventory of foreclosures and new homes.

* The Obama administration will act on its plan to crack down on abusive lending practices.

* Mortgage holders in danger of losing their homes will receive more assistance from a variety of programs since the Senate's Joint Economic Committee has predicted two million foreclosures in 2009.

* Banks' restructuring should bring increasing calm, making loan modifications and short sales easier to obtain. Eventually this will lead to a decrease in the number of bank-owned properties on the market.

* Mortgage applications will continue to receive a comprehensive review, requiring borrowers to provide extensive income and debt documentation. Those with the best credit will get the best rates.

* The foreclosure crisis has created wiser consumers, with a deeper understanding of real estate, mortgages, and credit enabling better decision-making going forward.

* Green is good with increasing numbers of buyers opting for smaller homes that are within walking distance of school and work.

* Buyers and sellers will be more and more tech savvy, relying on tools like video, webcasts, and mobile search. Consumers and practitioners will benefit from being ahead of the curve.

* Prices will be low as will interest rates, creating great buying opportunities, and likely, inspiring reluctant buyers to make their move.

* The recession will end and buyers will regain confidence in the market.

I basically agree with five of these predictions, and I'm not either comfortable or confident enough with the rest. Read from the link above to get the whole take on each.

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