Temecula Valley 2010 Real Estate Forecast
”Wow! What ever happened to California being the “Golden State”... the land of milk and honey?”
”Real estate in our great state has taken a beating over the last several years as foreclosures hit an all time high,” affirms Scott Partridge of RE/MAX Elite Team in Temecula.
Are we out of the woods?
Many forecasters believe that 2010 will be the start back to a normal market, as bank owned inventory dwindles and interest rates remain low.
Recap of 2009
The beginning of the change in bank owned properties. The first part of 2009 was the last of the big releases of inventory, and since then properties have been slowly released causing major bidding wars on homes. Banks have done one of three things to control the market: Hired property management companies to rent out their homes; slowly released them; or holding them until the homes regain in value.
Fannie Mae announced last month that they are considering letting the home owner stay in the home after foreclosure to reduce the amount of homes on the market. This is very good as the owner being foreclosed on would have to rent anyway and possibly move the kids to another school; so why not keep the family in the home and pay rent to the bank.
The banks like this plan as it will allow a one year rental agreement and a month to month after that. This helps the credit score of the owner being foreclosed on as well, and shows they support the bank’s effort to help them in this situation. Right now, there are more buyers than inventory, allowing standard home sellers to enter back into the market.
To owners considering selling their homes and moving up in to bigger or better homes, now is the time to do so and take advantage of the Tax Credit that the FED’s have given them. Aided by the extension of the first time buyer tax credit of $8000, and the new plan of $6500 to those of us that are not first time buyers, the outlook for the 2010 housing market appears headed for a sustainable recovery.
Lawrence Yun, NAR Chief Economist, said: ”with no unforeseen events impacting the economy, home prices should rise between 3% - 5% in 2010. The lack of inventory, low interest rates and the tax credit extension is working better than first projected, and the inventory is being bought up quickly.” Forbes.com released an article stating that Murrieta and Temecula are rated the highest in the nation for homes sales, as they are the hub for Southern California.
To individuals considering buying or selling their homes, Scott Partridge of RE/MAX Elite Team is in touch with today’s market and can give them the advice they need to make the right decision for them and their families.
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