Market Conditions in 28712>Question Details

Isaac Allen, Real Estate Pro in Brevard, NC

Soooo, how is the market going to be 12 months from now?

Asked by Isaac Allen, Brevard, NC Sat Jan 16, 2010

Help the community by answering this question:


interest rates are higher.
$8k bribe gone.
winter season with buyers hibernating.

looks very quiet to me. lower prices also nationwide.
1 vote Thank Flag Link Sat Jan 16, 2010
You're kidding right? Hmmm....let me look into my crystal ball... geesh, it's all fuzzy!!! Seriously, I wish I had the answer to that question....and if I did, my next feat would be picking tonight's winning powerball numbers!
1 vote Thank Flag Link Sat Jan 16, 2010
Here in Western North Carolina our market appears to have stabilized, leading me to believe that the next 12 months will begin to turn around and head back to a good, predictable selling and buying real estate environment. This stabilization has come about from sellers understanding the true value of their property, opposed to hanging on to the peak pricing of 2005...allowing older inventory to be cleaned out. The Clay Team is very much encouraged by the current trend and look forward to being a major contributor to this new, fresh, and emerging real estate market.
0 votes Thank Flag Link Wed Jul 13, 2011
I forgot to add below. We have massive amounts of foreclosures coming through 2012. That will bring prices down.
0 votes Thank Flag Link Tue Feb 23, 2010
Its gonna be HOT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
0 votes Thank Flag Link Tue Feb 23, 2010
No one knows the answer to that question Isaac. It all depends on several factors. Eventually we will climb back out of this mess that we're in, but several things need to come together.

The first factor is what happens when the Fed stops buying all of our mortgages in March. The federal government (Fanie Mae, Freddie Mac, Ginnie Mae) have been buying about 76% of all mortgages in the US since the beginning of 2009. When a mortgage is created for your buyer there has to be an investor of some type that buys this paper on the back end and holds it long term, whether it be Fannie Mae, some big REIT or some other stock fund. That's the way the system works. The government has been able to keep mortgage rates low, because they don't have to make as much of a percentage as some other investors would look for. At the end of March the FED will own some 1.25 TRILLION in mortgae backed securities, and they've said that they will put a halt to this at that time. What this means is that there's a potential for interest rates to make a considerable increase at that time.

The second factor is jobs. We have to get some of these people back to work, so they can get back to a normal life and afford to buy a home. Companies are making money again, but most of them want to build a little cushion in their bank accounts before they can start to hire some more employess. That's just business. If our government can continue to stimulate the small and medium sized businesses, so that they can continue to hire new employess, then we'll slowly crawl out of the unemployment mess.

The third factor is reality. We have to accept the fact that some companies aren't going to be around anymore. Homes are not going to be worth what they were over the last 3 years anymore, excluding some shore up areas of course, and the same jobs that people have been holding over the last 3 years or more, are just not going to be paying what they were. It's just a reality check for us that we'll eventually get through. It's teaching a lot of americans to do things the smart way. Live within your means. Stash cash when you can. And look at your long term investing goals.

The market picture overall 12 months from now will look a little better, but you'll still have a ton of people that are trying to adjust. We have to get back to letting the markets correct themselves and live without government intervention and without borrowing so much money, as individuals AND as a government. Once we get back to that point, you'll really see a new NORMAL that's much better than it was before.
0 votes Thank Flag Link Sun Jan 17, 2010
I specialize in 'deal-pricesd' properties.This week in West Palm Beach and Palm Beach, Florida has been 'gang-busters'...clients coming into town to buy from all over, lots of cash buyers...and making reasonable offers. I am very optimistic for a good 2010, at least in our area..

Marsha Montoya Mayer- Realtor
Paradise Properties of Florida, Inc.
Cell: 561-329-0428
0 votes Thank Flag Link Sat Jan 16, 2010
Hi Isaac,
Welcome to Trulia-
I will be able to provide you with facts and numbers in a year from now :)
0 votes Thank Flag Link Sat Jan 16, 2010
If we knew the answer to that question, I don't think that we would be in the mess we are right now. : )
0 votes Thank Flag Link Sat Jan 16, 2010
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