This will be the last blog entry for 2010. So it seemed fitting to ask a handful of our real estate agents about the past year and what they envision for 2011.
Kittean Little – Beverly Hills
“2011 will be a far superior year than 2010. Consumer confidence is likely to grow and trickle into the real estate market.”
Bud Mauro – Northridge
“In 2010, as in 2008 & 2009, I think most REALTORS®, were expecting the market to make a come-back; to rebound, even just a little. Something to build up some confidence in the minds of the novice Buyers. It just didn’t happen.
Of course, the seasoned veteran Buyers didn’t have that problem. The “veterans” were buying Short Sales and REO’s with 50% cash down, and in many cases, all cash. Veterans “know a deal” when they see it. The novice Buyer, not understanding the current market and fearful of market stability always seems to want to “low-ball” the Listed Price. By the time they get the message that home has gone to a veteran Buyer.
The Sellers in the 2010 market had adjusted to the current market values. They had a need to sell and respected their REALTORS® opinion of market value. The novice Buyer was not comfortable with values, whatever the price. All in all, the real estate value of average priced homes stayed quite level in 2010. Some showing a slight increase (maybe around 2%), while the higher end properties showed significant price reductions.
The market was haunted all year long by the threat of the foreclosures still to come (Shadow Inventory). That hasn’t happened. Inventory is still low. NOD filings have lessened for the time being. The threat of an over abundance of foreclosed properties is still in the mix. When they will “hit” the market is a mystery.