It’s a new year, a new start but are we looking at the same old real estate market? Many are saying we hit bottom the second half on 2010 and are on a slow rebound. With 5 months of increased sales, lower inventory than has been seen in several years we may be passed the worst.
I predict a slow recovery completely dominated by the employment situation. Christmas retail spending was higher than it has been in years indicating renewed optimism in the economy. I think locally we may see prices dip a little lower in areas with higher foreclosure numbers (look at it as a bulls eye radiating out from Boise – the further out we go the harder the hit to the market and longer to recover).
Believe it or not we will be looking at a housing shortage (as well as experienced craftsman to build them). We may start feeling the pinch as soon as 2012 (about the same time the Mayan calendar says we are doomed??) Construction starts have been down for several years, there will be pent up demand when the economy starts turns around.
If you have cash sitting around it couldn’t be a better time to buy an investment property. Our local rental market is shrinking and the pool of renters is growing. Interest rates are sill incredible, people still need shelter and without a doubt the market will go up!
I wish I had a crystal ball but I unfortunately don’t. Just like we don’t know when bottom has truly been hit until it has passed we won’t know how accurate my predictions are until next year. Stay tuned and I will keep you posted…