The New Year. Outlook for 2011
As 2010 winds down we are looking for some indication of what 2011 has in store for us. I am not an economist nor do I place great faith in the observations of the so called experts that dot the communications network ( tv,radio,the Internet,etc).The purpose of these experts is to capture your attention . They will lure you in with sensational headlines designed to get your attention. Quite often the substance of their observations has little connection with their initial remarks. They are competing for your attention so the more sensational a headline the more likely you are to keep watching or listening to that station.
I operate a grass roots real estate business. Many of my clients are first time home buyers or sellers. The buying or selling of their home is of paramount importance to them. The price of the home that they sell or purchase is influenced by the prevailing economic conditions.
. The holiday season is traditionally the slowest time of the real estate year.Business normally grinds to a halt. This holiday season has been different. I have been very busy. During the past week I have written 5 offers and had 3 listings enter into contract. Two of my clients have been outbid on several occasions. They are actively looking at property and offering competitive prices.
I accept the fact that distressed properties are still influencing the market but banks are asking for competitive bids and refusing to accept low ball offers. If the holiday retail season is any indication of things to come the economy should be booming. Every time I went shopping the stores were packed and people appear to be purchasing at record rates.Hopefully this carries over to 2011.
I tend to be the eternal optimist but I honestly see positive change . Interest rates have been at record lows overwhelming the banks with refinances. They stopped prioritizing purchases and directed their efforts to the wealth of refi clients. Rates have gone up enough to end the refi flood. Banks will have to refocus on purchases , loosening up on requirements and streamlining the approval process. That should provide a real spark to the residential market Overall I believe that 2011 will be a good year. HAPPY HOLIDAYS