While there is no crystal ball, chances are good that 2009 will be better than 2008. Mortgage applications reached a five-year high in December, reflecting mortgage rates at a five-year low. What was surprising was unemployment claims showed the largest drop in 16 years towards the end of December (so unbelievable they rechecked numbers!). Although labor market troubles are far from over, that at least offers a bit of encouragement.
For the housing market to recover prices have to stabilize. We are certainly close to a bottom and people can overlook bargains for only so long. 2009 may be the year for bargain hunters…I know I am seeing more buyers getting ready.
If you are looking at foreclosure bargains be prepared for a flip side to the bargain prices, however…and not just in the city. I was out showing some foreclosures yesterday in a nice suburban neighborhood. As is typical with foreclosures in any part of the city, they required some work…broken windows, damaged walls and floors, kitchens/baths in need of renovation, appliances needing replacement, etc…great for people ready to invest sweat equity, but know what you're getting into.
For me, I'm heading to New York City this week for a real estate conference that brings people together from around the world to look ahead into 2009…where is the market going? what new technologies will create new ways of thinking? what is happening globally? On Friday I'll share some insights I learned…then enjoy some play time in one of my favorite cities!
