2009 was generally a very difficult year for buyers, sellers, and most but not all Realtors. We can comment on the past but no one is sufficiently prescient to competently predict what will transpire during the balance of 2010 and beyond. Many buyers became complacent with low down payments and easy qualifying standards. We have reverted back to more stringent lending standards. Offsetting this are historically low interest rates.
A few comments and thoughts:
For buyers it is always tough to find the right home at the right price. 2009 was particularly difficult because there were far fewer sellers than in recent past years.
Yes, it was a buyers’ market, but that does not make it any easier.
All-cash buyers were and always will be in the cat-bird seat, but attractively priced properties often receive multiple offers from qualified buyers.
Often, the most financially astute buyers confuse making a good deal with making a good home. After all, while no one wants to lose money on a significant investment, the downside is protected if one buys what one can afford.
Many sellers, who would otherwise sell in a more robust market, may not be selling because (1) they don’t have the necessary down payment for a new property purchase, or (2) they are unable to find a suitable replacement property for their current life style or (3) they became focused on making the profit the sale rather than focusing on making a smart purchase and the profit potential in the future.
Data on comparables, to a large extent, became less relevant in 2009 and might continue to be so into 2011. It doesn’t necessarily matter what a comparable home or condominium sold for three months ago. Yes, it might be something to hang one’s hat on, but what does it really mean? With the market so thin (read, not many transactions) and the spate of short sales and foreclosures, a one-off sale does not mean that a comparable property will sell anywhere near the same price.
Residential Real Estate
Looking Toward the Future
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