Anyone want to predict the Real Estate market for the next year? (home, buy)

[HarborEastGuy]

Boy...

Now don't I feel like a trouble maker now for starting all this commotion..
I just wanted to ask if people thought the market was heading lower over 2011..

[HarborEastGuy]

And while I'm feeling like a real trouble maker, what did everyone think of the
heat wave we had today ??

It was up to 33 in Mendota Heights! It felt like Summer was sneaking in for a day...

[MN-Born-n-Raised]

Originally Posted by Tom55116

I just wanted to ask if people thought the market was heading lower over 2011..

Answer: Lower.

[Min-Chi-Cbus]

not really....maybe lower prices but not much, and if that happens expect to see the Fed react by lowering rates, offering easier financing, subsidies, tax incentives, etc. that will make it seem a little more optimal. I say for 2011, mostly stable, with a possible SLIGHT rebound at the end of the year going into 2012. For the next few years, I expect some recovery but very very very slight and there won't be any kind of "boom" in the Midwest again for at least 10-20 years.

[MN-Born-n-Raised]

Originally Posted by Min-Chi-Cbus

not really....maybe lower prices but not much, and if that happens expect to see the Fed react by lowering rates, offering easier financing, subsidies, tax incentives, etc. that will make it seem a little more optimal. I say for 2011, mostly stable, with a possible SLIGHT rebound at the end of the year going into 2012. For the next few years, I expect some recovery but very very very slight and there won't be any kind of "boom" in the Midwest again for at least 10-20 years.

See Foreclosures plague Twin Cities market | StarTribune.com


Nov 2010 Re: the MN Market: "With foreclosures still entering the market at near-record pace, inventory levels continue to rise. And even though the number of new listings slowed last month, total inventory is 10.6 percent higher than last year at this time. That, coupled with a decline in sales, has caused the supply of houses on the market to increase from 6.1 months in October 2009 to 8.2 months last month. That means that at the current sales pace and inventory levels, there are enough houses on the market to last 8.2 months if no new inventory were added."

[Min-Chi-Cbus]

Thanks....why did you quote me on that?

[MN-Born-n-Raised]

Originally Posted by Min-Chi-Cbus

Thanks....why did you quote me on that?

Because I said we had more to go and you said "not really". IMHO (as well as that link) we have a very soft market with even more local housing depreciation.

[Min-Chi-Cbus]

Well if it were a "sure thing" prices would be that low TODAY, but since they are not my point is that they may be artificially stable/inflated despite inventory gluts and whatnot....I explained that in the prior post as well. That's how markets work, prices today reflect what we know about the future today.

[need_some_sun]

will go down slightly and level out 2012, but no major increase or boom.

[HarborEastGuy]

Well I have talked to many people who tell me that until the economy improves
the home values will continue to trend down. There are just too many homes
either in foreclosure, bank owned, or sitting empty for the prices to go anywhere
but down. (And my landlord is a Realtor) So I guess I will just sit tight for 2 years..