How Will The Market Fare in 2010?
- Real Estate
- Published on Tuesday, 19 January 2010 10:43
What's in store for 2010? Realtor Jonathan Lerner offers his top ten predictions for the Scarsdale real estate market for the upcoming year.
10) The worst is over, the real estate market has hit bottom in Scarsdale and we will now even see some slight appreciation.
9) Out with bad credit… borrowers whose FICO (credit) scores are below 625 will not be able to obtain a loan. Lenders will be making loans with best terms to those whose scores are above 725.
8) The “move up” market will stay soft as owners choose not to sell what they own, though in the past, owners have typically moved up every five to seven years. Current owners, especially those who bought their homes in the past five years, don’t have enough equity to move. With fewer “move up buyers,” the driving force behind sales will be first-time buyers.
7) Builders will not build… in the early 2000’s builders were riding high. They could build on “spec” and sell before the dust cleared. Now, unless a builder has a buyer ready to purchase, builders will not begin the work.
6) Builders will go on a diet, making mini-mansions fashionable. The trend will be to build smaller, less expensive homes that appeal to first-time buyers and to those hoping to downsize.
5) Summer will bring a slump in housing sales. The home buyer tax credit was extended through April 30, 2010 with the stipulation that the sale closes by June 30, 2010. Since these tax credits are unlikely to be renewed, sales will drop mid-summer and interest rates may rise.
4) Inventory will fall as sellers smarten up and cancel listings that don’t sell. However, falling inventory will not drive up prices.
3) Due to the decline in sales, several of the local real estate agents will close their doors. This will reduce competition however inexperienced agents may find themselves without jobs.
2) With less inventory, more buyers will find themselves competing over attractive listings. Sellers of premium quality homes could receive ten or more offers. While these multiple offers may drive up pricing to the fair market value, buyers will not over pay.
1) Engel & Völkers will complete its brand new Scarsdale office and move to it's home in the historic Heathcote Train Station at the Five Corners.
Jonathan Lerner is the Managing Director for Engel & Völkers - a worldwide real estate agency with over 400 property shops located in 32 countries. Contact him at 914-723-5555 ow visit their website at www.engelvoelkers.com/us/scarsdale/