I know we’re already into our third month of 2011. But it’s going to be interesting to see how the year plays out in terms of the housing market. Will we expect to see many changes? Or will things stay relatively similar to what we’re experiencing now with sagging prices and high housing inventory? Bankrate.com has come up with a list of some of the most common trends we’ll see in 2011, at least through summer.
1. We’ll see less refinancing of current mortgages. Some experts say that it’s the higher interest rates that is causing this dip. But the other side of it is that those homeowners who have equity in their home already took advantage of a refinance within the last two years, as rates steadily dropped. So there won’t be as many who refinance in 2011.
2. It will still be hard to obtain a mortgage. And this is just because requirements to get one are tightening up. Lenders are being very cautious in loaning money. With Freddie Mac and Fannie Mae requiring some lenders to repurchase sold-off loans and causing them to lose money, they’re less likely to be as easygoing in lending new money unless you have very little risk, such as a high FICO score, solid appraisals on the home, and good income.
3. New homeowners are still unsure about taking that leap and buying that first home. Yes, interest rates are low. However, as just stated before, it’s harder and harder to obtain a good rate. And even though home prices are low, with so much inventory available, buyers are wary about purchasing if they’ll have to sell in the near future and have so much to choose from they often just decide to rent instead.
4. Home sellers will deal with the current economy and we won’t see any change anytime soon. The market time will continue to stay where it’s at, higher than in the past, because of high inventory and low prices. Best way to get your home sold is to keep it in showing condition and listen to your Realtor on a realistic selling prices. Homes do continue to sell. But don’t expect to get any bites by listing it above market value.
What do you think of these trends? Are you in agreement or disagreement? Please leave me a comment with your thoughts below or visit me online.