The question for today is: "Where Do You See The Real Estate Market Headed in 2011 ?" In order for us to gain the proper perspective, we spoke with professionals from 3 pieces of the Real Estate "Pie": A Real Estate Advisor, A Real Estate Investor, and A Real Estate Attorney.
The Real Estate Advisor that we spoke with is John Rymer, of Rymer Strategies in Tampa. Rymer discusses the continuous, "downward pressure in the form of added supply from foreclosures and banks finally disposing of long-distressed condominiums in many sunbelt locations", as well as the, "tightening of credit standards" from the, "GSE's (Freddie and Fannie) and overly zealous overlays from the major mortgage banks that have made mortgage approval the most difficult in generations."
Rymer tells us that, "As any renter will tell you, patience has been well rewarded in this downturn and strategic buyers who jumped in during 2008 - 2009 have been penalized are now gun shy about putting more money, or recommending to other to put money into real estate.". In addition, Rymer reminds us that the, "affordability of homeownership is at a 50 year record.", and warns that, "Sooner or later greed always overcomes fear". "Will 2011 be the year that we see a significant uptick in housing?", questions Rymer, rhetorically, "and replies, "Perhaps not until late in the year, but headlines seem to focus on the negative, so look for any good news to be buried on page 6."
For the perspective from a Real Estate Investor, we spoke with Marc Sherby, the "Sheriff Sale Guru", who believes that foreclosures will continue to be one of the, "hottest segments of the market in 2011, in spite of the robo-signing incident." Sherby has seen a drop-off in foreclosures at the end of Q4 in 2010 due to banks, "checking and rechecking their paperwork.", but says that, "as the lenders get their paperwork houses in order and as the continued sales are carried out, and as new properties are coming up for sale there will most likely be a deluge of housing on the market. That is why I see the market headed to another record year in foreclosures, as do most experts."
Sherby says that for those who are educated in purchasing foreclosures, "the buys will be extremely good to great as banks chop prices even further to move product from their non-performing assets inventory.", and says that while retail prices are still dropping in some markets, some others are stabilizing.
Troy Doucet a Real Estate Attorney, provides our Real Estate Attorney perspective, and says that he sees the Real Estate market, "continuing to stagnate this year into next.", and states that, "as the pressure of debt continues to grow on state and local governments, we will begin to see interest rates rise. As interest rates rise in the bond markets, rates will rise for homebuyers, meaning buying a home will become more expensive and will discourage buyers." Just as our other commentators have said in this article, Doucet also points to the number of foreclosures and the, "lender's shadow inventories of homes" as major contributors to the, "market's stagnation."
How about your point of view? What do you think about the 2011 Real Estate Market? We'd love to hear your comments.
Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com
TAGS: #realestate #foreclosure # shortsale
