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New Year - New Outlook
January 5th, 2011 10:39 AM

Real estate has certainly been on a roller coaster ride for the past few years and no one can really predict what the current year might bring.   But many experts have speculated and given some opinions on their 2011 predictions.

Right now, employers and the job market are in the driver's seat. IF hiring improves and jobs are more plentiful, then we will see an immediate improvement in the residential market.  That will be good news for sellers, and buyers will still have good prices and inventory from which to choose.  IF the government comes up with more great incentives for first time homebuyers, they will jump into the market again and fuel sales.   IF the media would  project more positive news concerning the real estate market, then consumers would stop being so nervous and would finally get "off the fence."

Everyone has heard that now is the best time to buy.  Prices are at rock bottom and interest rates are still low.  But unfortunately most people are more comfortable buying when everyone else is and that is what drives the prices up and overbidding on a property.  What buyers need to understand is that in a real estate market, it takes a very long time to correct itself, but once it decides to turn around, prices move up very quickly and the bidding wars begin.  The "bargains" that are out there today will be long gone.

Here is some positive advice for sellers this year: First, they should be pricing their home for exactly what it is worth.  The strategy of pricing a home too high and letting buyers make a lower offer can backfire, and often prevents the home from even being shown.  Second, realize there is competition in the same neighborhood so making sure inexpensive improvements are done and the house is in top condition to show is extremely important.

Most experts agree that home prices and the real estate market will rebound within the next 3 to 5 years to levels much higher than they are now.  History has shown that real estate markets can recover much faster than they can fall.  So what do buyers and sellers need to do in 2011?    Carefully consider your own unique situation, do your homework, and seek professional advice to make sure you are protecting your financial success.

This could be a very good year for real estate . . . . . but only time will tell.

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Posted by Barbara Doeringer on January 5th, 2011 10:39 AMPost a Comment

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