I must confess that I was happy to take down my 2010 calendar and start a new year. Everything looks good at the starting line to paraphrase an old song.
2010 was no exception. I started the first two months of 2010 building a nice inventory of properties, and in March and April I had sold more homes than I had sold for all of the previous year. Then on the first weekend of May storm clouds gathered, the flood came, the tax credit disappeared and pending sales dropped each of the next eight months from the previous year. A drop of approximately 30% from 2009's pitiful sales figures created a lot of pain and stress for home owners, the real estate industry, and banks. My year in real estate was parallel with the Tennessee Titans season, which started great, collapsed, and ended with a terrible finish.
So what is the forecast for the real estate market at the starting line of this brand new year. Well it looks like we still have continuing problems that will make this race uphill and difficult. Foreclosures, unemployment, high inventories, deflated prices, and a lack of consumer confidence did not magically disappear with the new year. But with that being said I do see some signs of improvement for the coming year. I am seeing fewer foreclosures coming on the market especially in the higher price ranges. The lack of competition from foreclosures and short sales should drive prices higher in the coming year. It is projected that the national economy will grow and improve in 2011. The improved economy plus excellent interest rates should bolster consumer confidence and bring more buyers back into the market. I believe we will start seeing the real estate market turn around this year, however it will most likely be a slow process.
The start of a new year is both a time to look forward and to reflect on the past. I was thinking back to 10 years ago. The year 2000 started off great with a Millennium celebration in New Orleans, the best year in real estate sales that my wife and I had ever had and great fun and accomplishments of family and friends, and a final 2000 Titans Victory on Christmas night. Life seemed too perfect.
Then in the first week of January 2001 we found out that my wife had cancer which was terminal by July, then followed by 9/11, the endless wars and fear and decline in our entire nation. The lesson learned is that the performance of the housing market and economy are of little importance as compared to your family and your health. So regardless of how the real estate market is doing focus on the most important things in life and everyone have a great 2011.
