Real Estate in 2010: Uphill Battle Continues

Real Estate in 2010: Uphill Battle Continues …

NEW YORK (TheStreet) — As the economy starts to show signs of a self-sustaining recovery, many have suggested that the real estate markets have bottomed out. However, there are plenty of signs to indicate an uphill battle still lies ahead.

From an optimistic view, real estate is still relatively affordable, consumer spending is trending in the right direction, real disposable income is on the rise, consumer confidence is at a three-month high, new-home construction is low and home sales are improving. These are all positive factors for the real estate markets that influence supply-and-demand forces and generally push prices up.

However, it is more likely that foreclosures and the demise of government funding will put a damper on these positive factors, further hindering the real estate markets.

According to the National Realty Association, there are more than 2 million homes currently in the foreclosure process and some real estate experts suggest that an additional million or two will likely follow in the coming months. With this in mind, banks are likely to flood the market with these homes, pushing inventory levels up and producing more than ample supply.

As for the government, the Fed is likely to increase the federal funds rate and exit the mortgage-backed securities program in the first half of 2010, which is expected to result in a significant increase in mortgage rates. Many suggest that the Fed’s purchase of mortgage-backed securities is one of the major driving forces propping up the real estate market.

Additionally, the first-time homebuyer tax credit, which was recently extended, is set to expire early next year and further take away an incentive to purchase a new home. 

In a nutshell, the real estate markets are much healthier than they were a year ago and are trending in the right direction. However, both macroeconomic and microeconomic factors suggest that prices will likely decline before seeing any significant increases 

by Keviin Grewal, Editorial Director at www.smartstops.net

West Linn – 2008 Real Estate Market in Review.

2008 was indeed one for the record.  In fact I often use the term unbelievable to describe the Real Estate market.  Like the rest of Portland’s market, how unbelievable the market it depends on the neighborhood you live in or want to move to – West Linn is no exception.

Over the course of the next several days I will be posting a blog reviewing 2008 specifically for West Linn followed by a “State of the Market – West Linn”.

Keep tuned – the first installment is due out this eveing.

First Post

This is the first demo blog post, you can edit this blog entry here. use the editor and change the title, body and images for this post. the first four posts will show on your home page and will be rotated based on the date they are published to the web.

Second Post

This is the second demo blog post, you can edit this blog entry here. use the editor and change the title, body and images for this post. the first four posts will show on your home page and will be rotated based on the date they are published to the web.

Third Post

This is the third demo blog post, you can edit this blog entry here. use the editor and change the title, body and images for this post. the first four posts will show on your home page and will be rotated based on the date they are published to the web.

Fourth Post

This is the fourth demo blog post, you can edit this blog entry here. use the editor and change the title, body and images for this post. the first four posts will show on your home page and will be rotated based on the date they are published to the web.