As 2010 comes to an end, Americans are bidding a not-so-found adieu to one of the most economically tremulousness years in history. Within the housing market 2010 was a year plagued with foreclosures, fair market value property retraction and a general downward spiral of the housing market as a whole. With the light at the end of the 2010 tunnel in sight, consumers are looking forward to an entirely new calendar year and the potential it may hold. However, the question remains, what is in store for the 2011 real estate market and do real estate industry insiders have any optimism for the New Year? Without an accurate crystal ball, the future is hard to predict, but there are some thoughts on the matter that indicate that individuals are still going to need to hang tough and be strong.
Housing Values to Increase By .78%
During the past year, housing values crashed hard. Within the real estate industry, it was estimated that home value losses totaled a whopping $1.7 trillion dollars. That cut was fueled by the trend of increased foreclosures flooding the marketplace, lenders reducing home prices to sell properties and get them off their books and private sellers slashing home prices in order to compete with the abundance of options. Many experts now believe that 2010 will go down in record books as being the year when the housing market as a whole officially hit rock bottom and ultimately, the housing recovery will take years from this point on.
The huge price discounts within the real estate market have indeed spurred a bit more activity in regards to sales, and according to a survey conducted by MacroMarkets LLC, a financial technology company, a slight .78 percent increase in home values will be the final result. MacroMarkets LLC recently polled 100 economists regarding their predictions for the near future of the real estate market and the somber news is that nothing is really expected to change.
Housing Recovery To Be As Painful As Meltdown
When the mortgage meltdown fueled by a sinister subprime mortgage industry started to kick into gear, the ill effects spread like wildfire to all sectors of the national economy. Over the past year the unemployment rate has grown to a massive 9.8 percent, consumer spending declined putting an additional burden on many businesses that in turn reacted by laying off staff in order to better manage their budgets. The major factor holding back full recovery of the housing market is the nations' staggering unemployment statistics. Until that sector is on solid footing and consumers have the financial resources to actively partake in the American Dream of homeownership, the housing market cannot rebound.
Job market data statistics have shown that gradually companies are starting to hire again. In turn, it is estimated that housing sales in 2011 will be as active as the 2000 market with an expected 5.1 million home sales transactions looming on the horizon (MSN.com). However, since that time the population has grown by 30 million meaning that the odds of people renting versus buying a home now is tilted in the favor of the former. The future of the 2011 housing market is equivalent to the saying "Rome was not built in a day,” meaning time is needed.
So What Is The Future of The Housing Market
As a whole, the housing market is a mixed bag of tricks. Some markets such as San Francisco, California are seeing an increase in both home value and properties sold while other markets are still seeing huge decreases in both activities. While individuals (and stock markets) are longing to here the news that America's economy is back, chances are that announcement will not occur in 2011. For those who have the down payment and financial means to support a purchase of a home, the time has never been better to score huge savings, low mortgage rates and help contribute to the national infrastructure. For property owners waiting for their property values to rebound, long-term patience is advised as the more time a consumer can commit to their home, the greater chances that the housing market will rebound.
The unraveling of the nation's housing market was many years in the making, and it will take at least equal amounts of time for positive changes to go into effect. While financial experts are all chiming in to make their predictions of the future of the residential housing market, the fact is only time will tell what 2011 holds in store.
