What’s in store for 2010?

No one can say for sure, but the overwhelming consensus is that home sales will continue to increase nationwide, as well as slight (positive) adjustments in prices.  The news from most economists is positive.  It looks like the darkest days may have been left behind us in 2009.  In the last half of 2009, The National Association of Realtors reported increased home sales in almost every month.

What about local opinion?  2009 started out as one of the rougher years I’ve seen in the nine years or so that I’ve been in the business.  Locally, there were literally only a handful of sales in the beginning of the year, and all indications were bleak at best.  As summer came along, so did the sales.  The vast majority of sales that I saw through the summer/fall of 2009 were bank owned property, or distressed short sales.  The combination of these sales with the difficulties in financing made land sales incredibly slow.  First time homebuyers making the plunge helped to spur the market, thanks in most part to the $8,000 tax credit.  The holiday season has always been a slow time in real estate, and it was completely normal to see a slump.  As I head into 2010, my feeling is that we’ll have a slight upturn in sales through the beginning of the year compared to December (mainly residential) and that summer 2010 should see this market stabilizing.

This outlook is dependent upon a few major factors, however . . . First, any major adjustments in the interest rates.  Adjustments are expected in 2010, and those adjustments are expected to bring interest rates nearer to or above 6%.  I think that a higher increase may do some damage to our slowly recovering market.  Second, I am curious to see what will happen to the Homebuyer Tax Credit.  This has been instrumental in the rise of residential sales . . . I feel that the end of this might create a little hiccup.

All in all, I’m hopeful that 2010 will bring a change for the better in the Teton Valley real estate market.