Real Estate Predictions 2009

We made it. We’ve reached the end of 2008 a bit bruised, but still intact.

By sorting out my desk, files and piles of stuff, I’ve decided to get ready – mentally at least - for 2009. In doing this end of year clearing, the famous turban once owned by the one and only, “Carnac the Magnificent”, was discovered folded neatly amongst my collection of Richard Nixon face masks, Screaming Mirrors and Perot for President campaign buttons. Carnac’s turban remains the one, reliably useful object. Let’s give it a try to see what may be in store for 2009:

• Mortgage money will continue to be freed up by more banks and brokers as pressure mounts from both Congress and the public.



• Interest rates, currently around 5.3%, will remain historically low – at least until April.



• Home prices will probably continue to decline through June or so, but less dramatically than the previous 12 months. There may be some areas of the country, mostly in the South, that will continue to see steeper declines, especially for condos. When home prices eventually go flat they will remain so for quite some time - until housing inventories lessen. Bargain hunters and savvy Buyers will be out in force by early March.



• Multiple-family homes will again be popular as owner-occupied options and investments. See my earlier Blogs about this type of housing.



• Smaller, more affordable homes will attract Buyers, both first timers and down-sizers.



• Homes close to amenities will out-sell their more rural counterparts. City and town governments will be open to reasonable re-zoning proposals to lessen the need to drive for even basic commodities. “Neighborhood” will be the new buzz word. Buyers will want to get the scoop on specific areas more than just looking for the features of a specific home. Location, location will mean more than acreage or square footage.



• Families will again expect children to share bedrooms – fewer “en-suites” for junior.
  
  For my part, I intend to continue helping my clients by keeping my eyes and ears open for trends and home values, by adding extra services and in… helping them to get home.
  
  Not to worry – Happy 2009!