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:
- 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.
- Home sales in Orange County will increase by about 10% year over year.
- 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.
- 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.
- 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.
- 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.
- 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