CNN predicts that 2009 will be “The Year of the Thaw” anticipating a slow but steady recovery. According to Forbes.com there will be a “Real Estate Resurrection” in 2009. Unlike the stock market, the real estate market is really thousands of mini-markets spread out across the country. While making long-term predictions about prices and sales in specific areas is difficult, there are rays of hope emerging for real estate.
Prices adjusted over the last year and 2009 is set to be a much better year than 2008 with home prices balancing out at more normal levels. The government is helping by getting rates to the lowest levels in 37 years, making homes more affordable. Consumer confidence is coming back.
I anticipate the first time homebuyer market will become more active in 2009 as the new generation of buyers recognize this market as an opportunity to build wealth in real estate. This will in turn help more “Move Up” buyers make their next purchase.
Homes will continue to sell in 2009 with the increased help of lower interest rates. The Baltimore Washington/DC market fared well in 2008 and will continue to do so. There’s an unprecedented sense of “starting over” with the new administration which should also boost confidence among buyers and sellers.
With BRAC right around the corner (Base Realignment And Closure), and the influx of buyers moving into this area, demand will be high, and the appreciation for the future looks bright.
For many sellers who’ve experienced lots of showings but no offers, you may see the buyers who toured your property returning for a second look ready to purchase in 2009. Ask your agent to begin quizzing the buyers or their agents to find out what their objection was to the home, if you find a common theme — fix it, and sell it.
In general home buyers are driven by key motivators that remain unchanged such as jobs, schools, affordability, lifestyle, and health care. The Baltimore Washington Metropolitan area offers home buyers incredible opportunities and amenities in these areas and we are set to outperform the general market in 2009.