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Archive for January, 2010

Top 10 List of Real Estate Predictions in Sacramento for 2010

Sacramento Real Estate Top 10 Predictions for 2010

1.  Short Sales will continue to be the most viable way out for most underwater homeowners. New regulations will hinder the banks already slow process and what little bit of momentum that we have in getting these things done will stall. Three to Five month will be the norm. Sorry I just can’t lie.

2. Bank Owned REO properties will continue to be metered out to the buying public at a controlled pace. If you are waiting for a flood of REO properties and a double dip housing market keep dreaming. The banks will protect their assets by keeping the inventory short. Three month supply max.

3. Investors will continue to buy up prime rental properties. Savvy investors have realized that we are at the bottom or dang close. As long as interest rates hold around 5-6 % Cap rates should still be favorable for the buy and hold investor.

4. The Tax credit will be extended again. Why would they stop now?  Washington is having too much fun playing God with our economy. Government intervention will continue to prop up the market and provide financing options. The real question is how did Japan’s economic policy work out over the last two decade’s??

5. Mid to High end homes will be hit hardest by defaults and foreclosures as the upper middle class bleeds out. Most Mid to High end homes are owned buy business owners.  Small business is wounded in California. Between our states addiction to money and the declining economy California might just be the worst place to own a small business.  Expect past business owners to close their doors and walk away from it all.

6. It will become “In Vogue “to do a controlled foreclosure by strapped homeowners who feel that banks have done nothing to help underwater mortgages. Heck it might even take place on an episode of Desperate Housewives.

7. First time home buyers will get some amazing deals on homes that they can afford. It is undeniable that with prices where they are at and interest rates low, First time home buyers with solid employment will land their dream home!

8. Mass media will claim that the foreclosure crisis is over. As banks start to extend the mother of all sub-primes (Loan Modification) to homeowners the mass media will claim that the worst has passed. Remember what your Parents said about TV.

9. Commercial real estate will hit record lows as small business retracts. People do not have the money to spend and what little they do have they are saving.  Retail Strips will have large amounts of vacancy and defaults.

10. The reality of the long term period of no to slow growth in the market will hit the general public