2010 became the year of “less is more”. Consumers have focused on downsizing and minimizing their spending. While many economists are confident the worst is over, we must be prepared for a slow recovery. The turnaround in the economy will not depend on the changing trends of the consumer, but instead in the decisions made by our leaders. While the market had a snapshot recovery the middle of this year with increased sales prices, lower days on market, and high demand; the fourth quarter had a plummet in sales prices.
2011 will start with limited inventory of good distressed properties. Short sales continue to flood the market, though many banks have announced on several occasions that the first and second quarter of 2011 will bring an abundance of new foreclosure inventory. Still the high end market is at a stand still.
Most people ask if now is the BEST time to buy or sell your home. Timing is different for everyone. If you are thinking of buying a home, or even downsizing, this year provides ample opportunity for you. The beginning of the first quarter will show slow recovering low price points, good interest rates, and eventually extensive inventory.