By Michael Hughes January 28, 2010
What Do I Think 2010 Will Bring?
- The fallout from the jobs market will continue with an increase in Foreclosures and Short Sales mostly on the coasts and Las Vegas, NV.
- Look for more foreclosures and short sales in the upper price ranges.
- Because of the feds’ decision to no longer buy mortgages, starting the end of March, Interest Rates Will Rise. A great way not to stimulate the economy; higher interest rates. We’ll see.
- The homebuyer tax credit may not be extended beyond April 30th, 2010 and/or may be reduced.
- 2010 will be a year of recovery. Nothing dramatic but it will be in the right direction. Given the over-reaction of the financial and corporate world in 2008 we are now seeing jobs slowly return. In Boulder County we are in pretty good shape and 8th in the nation as far as the lowest unemployment.
- Because we didn’t have the run-ups like some areas we will recover faster than most areas.
- A balanced market is about 5.5 months of inventory in a given price bandwidth and area. It will continue to be a buyers’ market in most areas of Boulder County with as much as 24+ months of inventory in some areas. But there are some areas of Boulder and in certain price ranges where there is only a 4 month inventory (more a sellers’ market). The absorption rate calculated for these areas is nothing more than a very handy way to explain supply and demand.
If you have any questions please give me a call anytime Michael or visit me at my website. Please leave a comment below.
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