1. Prices At Bottom: After more than three years of falling, (all things being relative, Boulder prices never fell as much as the rest of the nation) real estate values have shown signs of stabilization in recent months. This improvement will give way to a bottom in home prices—finally!
2. Mortgage delinquencies up: Additional job losses mean more borrowers won’t be able to pay their mortgage bills.
3. Foreclosures move upstream: The foreclosure rate is not expected to peak until January 2012. The number of foreclosure sales will increase to about 1.9 million in 2010 alone, according to Moody’s Economy.com. And while we’ve already seen a growing number of more expensive homes heading into foreclosure, Heather Fernandez, vice president of marketing at the real estate search engine Trulia, expects the trend to pick up steam next year.
4. Mortgage rates to rise: Low interest rates a thing of the past. A key factor behind the plunge was a Federal Reserve program, first announced in November of 2008, that purchased debt and mortgage-backed securities from Fannie Mae and Freddie Mac to the tune of $1.25 Trillion. That program ended March 30th 2010.
5. Buyer’s market remains: With prices still falling, mortgage rates remaining historically attractive, and additional homes hitting the market in the form of foreclosures, the dynamics of the real estate market will continue to favor buyers over sellers in 2010
6. Modification plan could be modified: While the Obama administration has put nearly 700,000 borrowers into temporarily restructured mortgages, it had found permanent fixes for just 31,382 struggling homeowners through November.
7. FHA lending standards may increase: While banks have jacked up lending standards in the face of mounting delinquencies, mortgages backed by the Federal Housing Administration—which come with a minimum down payment of just 3.5 percent—have remained accessible to a wide swath of borrowers..
8. Tax credit available if you put it under contract before April 30th and close by June 30: Oops too late!
9. Markets will vary a great deal by region: The performance of the national housing market is much less important than the dynamics in our local market, and sales and pricing trends will vary a great deal from one area to the next in 2010.
10. Mobile maps can help: Advances in technology have enabled would-be home buyers to increase the efficiency of their searches. For example, Zillow’s iPhone app allows home buyers to see the estimated values and listed prices of the properties they pass on the street.
If you have questions regarding this article or are thinking you will Buy A Home In Boulder please call or text me 303-359-6627 or e-mail Michael Hughes at Fuller Sotheby’s International Realty in Boulder, CO. Featured Listings