The 2010 Real Estate MArket
December 6, 2010
California Real Estate Magazine had an interesting article in the November/December issue. Entitled "That was Then, This is Now", the article addresses what occurred in2010 and projects what might be expected in 2011.
A few highlights from the article:
"Investors are driving the recovery. In 2010, 18.7 percent of home purchases were by investors..."
"Sellers received an average of only $35,000 on the sale of a home - a record low. This explains why the trade-up market continues to languish. The percentage of sellers who sold their homes with a loss decreased slightly to 30 percent from a year ago but continues to be dramatically higher than the long run average of 10.5 percent."
"Distressed properties accounted for a smaller share of the market A year ago 54 percent of home sales surveyed were traditional, non-distressed sales. This year, 59 percent of home sold involved non-distressed properties."
Legislatively, in both state and federal bodies, 2010 will bring new rules and changes in the money lending market place. Fannie and Freddie may be overhauled, the mortgage interest deduction will be revisited and new oversight of lending practices may be created.
2010 seemed to be a year in which the housing market began moving in a more stable direction.
Those who purchased homes in 2010 may look back and be thankful that they acted when prices and loans were in their favor. I investors looked at the market and decided to act, individuals looking for a place of their own were probably wise to also purchase a home.
California Real Estate Magazine had an interesting article in the November/December issue. Entitled "That was Then, This is Now", the article addresses what occurred in2010 and projects what might be expected in 2011.
A few highlights from the article:
"Investors are driving the recovery. In 2010, 18.7 percent of home purchases were by investors..."
"Sellers received an average of only $35,000 on the sale of a home - a record low. This explains why the trade-up market continues to languish. The percentage of sellers who sold their homes with a loss decreased slightly to 30 percent from a year ago but continues to be dramatically higher than the long run average of 10.5 percent."
"Distressed properties accounted for a smaller share of the market A year ago 54 percent of home sales surveyed were traditional, non-distressed sales. This year, 59 percent of home sold involved non-distressed properties."
Legislatively, in both state and federal bodies, 2010 will bring new rules and changes in the money lending market place. Fannie and Freddie may be overhauled, the mortgage interest deduction will be revisited and new oversight of lending practices may be created.
2010 seemed to be a year in which the housing market began moving in a more stable direction.
Those who purchased homes in 2010 may look back and be thankful that they acted when prices and loans were in their favor. I investors looked at the market and decided to act, individuals looking for a place of their own were probably wise to also purchase a home.
posted by shirley harry at 8:52 AM
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