Real Estate Market: Real Estate Crystal Ball…What Would It Show?

  If we only had a real estate crystal ball. “Where are we and where are we going?”  Are questions that we get asked a lot lately.  Well, we don’t have a real estate crystal ball but here are some answers based on trends that are now becoming apparent. First, market activity has improved dramatically over this time last year.  It has been over 12 months since the stock market hit bottom.  Investor confidence is returning.  Many Americans are feeling more confident about their wealth – so long as they have stability in their job.  Allen Tate Company’s sales volume has increased 25% YTD vs. same period last year and each month is showing stronger gains. The 2009 tax credit certainly helped the market with first-time buyer tax credits.  The extension of those credits and the addition of the repeat buyer credit are helping us right now.  There remains uncertainty of what will happen as those credits expire April 30.  If you plan to take advantage, NOW is the time!  Please contact the Lee Ann Miller Team to get started and get under contract by April 30.  There will be NO better time than now to buy a home. Prices remain well below the peak of several years ago and I expect any appreciation to be slow in coming.  While many industry leaders are declaring “increases in average sale prices”, look carefully at this.  The higher-end market is beginning to see signs of activity now.  Those sales are having a positive influence on the average sale price but it is my opinion there is very little true appreciation in the market.  Nonetheless, long-term opportunities are plentiful right now. Interest rates remain at or near 5%.  Two influences will impact rates in the near-term.  The Fed is preparing to cease purchasing “Mortgage Backed Securities”, so it is likely that rates will rise slightly as the open market investors will demand higher returns.  Opposing that influence is the position by the Fed that they intend to keep rates at historical lows for the foreseeable future.  Bottom line – I expect rates to remain between 5% – 6% in 2010. So, this is very good news for you.  The buying opportunity right now is as good as it will get.  The market activity has improved dramatically.  The higher-end market activity is thawing.  Please call us if you are interested in a summary of your personal needs.  We would be delighted to assist you or your friends. Sincerely, The Lee Ann Miller Team     .

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