Looking forward to a “Stabilized and Sensible” real estate market in 2011.

Is 2011 going to be known in Real Estate as “The year that the madness stopped”?


In the last few years we have seen the pendulum move from “free for all” to “none for most”!

Last century showed this clearly and it holds true today: A home is an investment - A Long Term investment with some peaks and valleys. When our parents purchased their home it was for a family to have a roof over their head, to have a safe place to raise a family and a place to proudly call “a home”.

There is a hope and an expectation that in 2011 a house will become a home again and not primarily and investment choice of the last few years.

All economic indicators state that “economy is improving” - unemployment is showing a slow but steady progress for the better; the interest rates have hit the bottom and are on their way up so the wiser buyer will get off the fence posts and act; the sellers are arriving at the realization that “we are no longer in 2003-2005 real estate whirl wind of climbing prices” therefore most sellers are starting to price their homes more in line with the present market trends. Buyers are more often of the opinion, that the value of a home is not just an investment but also a secure place to raise a family in a good neighborhood, at a convenient location which is in line with their family goals and the lifestyle they desire.

In addition, an expectation is that mortgage lenders will start to see past their own fears; stop punishing today’s buyers for their own mistakes unnecessarily made in the recent years and permit those capable of buying to buy!

More buyers are willing to pay a fair price for a quality home, sellers are ready to move on with their lives and not expect that their home is the only possible money making investment.

There is also an expectation that there will be more foreclosed homes available for sale in first part of the year, therefore influencing prices negatively. Many believe that some homes in the foreclosure process are held back at this time due to the overwhelming numbers, a cumbersome process and legally unresolved issues.

Available indicators state that 2011 will not see a huge increase in prices or activity in residential home resale market. The expectation for the second half of the year is that the prices and the activity will softly but steadily increase and we should see stronger numbers of sold homes and an increase in the sale price of sold homes.

Looking forward to a “Stabilized and Sensible” real estate market in 2011.