San Jose, California Real Estate Market - Looking Ahead
Home sales in California showed a short lived increase in 2010 as several stimulus packages took effect and motivated buyers to take advantage of their benefits. As these programs wound down, however, sales stalled. With the new year upon us, hopes are high for the economy and, in particular, the housing market. Recent studies suggest some positive developments may occur, while some facets of the real estate market will still leave much to be desired. The San Jose real estate market has seen its share of ups downs over the past few years, so what can be expected in the upcoming year?
The Local Market Monitor, a North Carolina based research company, recently released a forecast that gave overall California real estate a positive outlook based upon patterns and cycles displayed in over three hundred markets across the nation. Others disagree, posting forecasts of four percent deflation in the area over the next year. Last year, home prices and the number of sales dropped steadily before nearly flatlining in the later months. Market trends have been a bit of a mixed bag so far this year, with the average list price for home increasing almost three percent from a month ago. Number of homes sold, however, is still on the decline.
Gauging the market's future is a tricky, multifaceted process. Unemployment rates affect how real estate performs, for example, as does consumer's ability to borrow money. However, the future really depends on one major factor: the United States government. If they ensure mortgage rates remain low, it could help the market recover. Alternately, raising them could see home prices plummet even more. Tax credits, lending standards, and more also play a huge role in how the real estate market behaves. Numerous incentives and assistance programs could help drive the market back up. Watching the government and their handling of the housing market is an excellent way to gauge market stability.
Over at least the first part of 2011, things will likely remain much as they are. Buyers will continue to be able to find properties whose owners are much more likely to consider lower offers for. And the thousands of homes currently in various states of foreclosure will also provide buyers and investors with numerous opportunities they may not have had before. Sellers, on the other hand, don't face such a good outlook. The market is still a tough egg to crack, and selling a home can be difficult. No matter how the market performs this year, a good real estate agent is a must for anyone involved, buyers and sellers alike. The road may be bumpy, but a good agent can help make traveling it smoother.
About the Author:
As Realtor Consultants, Don and his team give their clients all the information they need to make Good Real Estate Decisions. Visit us today and find out why more people choose http://www.siliconvalleyrealestateteam.com/.
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