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2010 Real Estate Market Forecast Rental Property
After increase in prices for many months, real estate home prices flattened in October. Many real estate industry experts believe that prices may start falling in 2010 and some are predicting an average drop of 11.3%.
The 3 major reasons that real estate prices may fall according to these experts are:
1. Foreclosures – Many homeowners are facing foreclosures and banks have been slow in taking properties over. This has slowed the number of foreclosures, at some point the foreclosure pipeline will be emptied, and more foreclosed real estate properties will hit the market
2. Increase in Interest Rates – Interest rates have been historic lows and some mortgage experts describe them as once in a lifetime lows. Rates are headed up and have gone over 5% over the last few weeks. As rates head up, the real estate prices will be under pressure.
3. Tax Credit Expiration – Uncle Sam has been propping the market and driving sales of homes by offering tax credits to homebuyers. The tax credits reduce taxes dollar for dollar for $8000 for new homebuyers and $6500 for buyers who already own a home. However, these tax credits for purchase of homes are expiring at the end of April and demand for real estate could drop after that.
Read story from CNN Money on their predictions for real estate prices in 2010
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This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Find Out Who is Predict Housing Prices Going Down Further. Do You Agree? is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
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{ 1 comment… read it below or add one }
I agree that housing prices will continue to go down. You will also need to add to the equation the impact of immigrants. As they leave the country, this will continue to put downward pressure on housing prices. When you consider that nationwide the 12 million immigrants occupy approximate approximately 3 – 4 million housing units, this will continue to add to the Nation’s housing crises. I expect that the housing price will remain low for a long time as new home builders continue to add inventory to the market. It may be a full general before we can recover and replace the immigrant population. This I am not sure, as a substantial amount of the population growth came from immigration and their children.