- We will continue to see lots of volatility in the housing market thru 2010.
- Three major factors will contribute to the dropoff in the 2nd half of the year: Government intervention will disappear, shadow inventory will hit the market and mortgage rates will rise into the 6% range.
- The tax credit will not create significant new demand.
- When the April 3oth tax credit deadline expires for properties to be under contract, interest rates will creep up and more inventory will hit the market. Hence, prices will continue to drop another 5-10%.
- Sales volume will be flat versus 2009 (5 million to 5.5 million homes.
My purpose for this blog is to educate you in our complex real estate market. I welcome your inquires.
