New Year Predictions

Happy New Year!

I am going to go ahead and put myself out there and make a few real estate predictions for 2011. Here I go:

  1. Interest rates will definitely edge up slightly over the coming year. I think by the end of the year we will be up a full percentage point from where we are right now.
  2. Home sales in Orange County will increase by about 10% year over year.
  3. Home prices will stay about flat from January 2011 until May or June of 2011 and then edge up by about 6% to 7% by the end of 2011.
  4. Investors already make up about 20% of the homebuying market. This number will increase by about 3% to 5% as home values inch up and we begin to get leave the current market floor.
  5. The percentage of distressed properties on the market in Orange County will decrease slightly as more equity sellers enter the market. I expect a decrease of about 6% overall.
  6. Buyers will be less picky and sellers will be more realistic and homes will get sold sooner. A time of about 90-120 days on the market was not uncommon for a regular equity sale, but I think that time will decrease by about 30% to be 60-90 days on the market for regular equity sales.
  7. I don’t think we will see a marked increase of inventory. I think the number of homes for sale on the market will stay at the levels we had for 2010.

I hope you all have a joyous and prosperous new year! 949.525.5905

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