Housing Market Trends for 2011

Like many home sellers or potential home buyers, you're probably trying to weed out the nonsense and attempting to see what the coming year holds for the housing market. The real estate market is full of missed opportunities, bad timing, and a roller coaster ride history, especially of late. What can homeowners expect as 2011 begins?

It's a Buyer's Market

Yes, it's still a buyers market. There are plenty of homes for sale that are affordable and in good condition in many areas of the U.S. In many cities, the glut of new homes on the market has allowed for lower prices when choosing to buy brand new. This of course is bad news for sellers. Sellers can enhance their chances of landing a sale by keeping the house clean and well maintained, and listening carefully to any tips the real estate agent may offer for selling in your specific area.

Foreclosures, Foreclosures

There are more foreclosures coming in 2011. Currently, there are large numbers of foreclosures that are on hold because of the federal government's moratorium, however, the market is still loaded with foreclosed homes for sale. Again, this is good for buyers, but bad for sellers.

Mortgage Rates on the Rise

Mortgage rates are expected to rise in 2011, possibly by a full percentage point. Homeowners who want to refinance see this as the perfect time to do so, and if your looking to buy a home, getting a loan secured before the rise is good advice.

Short Sales Will Be Easier

When a buyer ends up paying less than what the current owner owes on the house, it's a short sale. In the past, banks were not eager to let owners sell this way, but because banks now have too many homes on their hands, they have changed their minds. Now, it's an option that's easier to get, rather than face foreclosure by the bank.

Loan Requirements Remain Tough

The easy to get home loans of the past are gone. It's important now to have a good credit score and be able to produce all documentation for all of you r finances. The standards are higher now and many people no longer can qualify for loans. Banks are looking for the right amount of income to cover your loan, when combined with your other expenses, and they are hard pressed to give a loan where the money just isn't there.

The real estate market fluctuates from month to month and depends on many factors, such as the employment rate for the area. It's a good idea to research other home sales in your neighborhood and talk to a real estate agent to get good advice before selling or buying a home.