Where is the housing market headed in 2010?

Dennis Norman

Will the Bears or Bulls prevail in 2010?

As the real estate market is beginning to show signs that we are “bottoming out” and that the down-slide is leveling off the discussion has become what the rest of 2010 holds in store. Some say we are entering a Bull market and expect prices to increase from the depressed levels they have reached citing the greatly increased affordability of homes and record low interest rates; others say we are entering a Bear market and that over-supply in the market, largely a result of record foreclosures, will continue to beat prices down.

Here’s what the “Bulls” say:

  • Home prices are at levels significantly lower than their peak levels during the “boom” and affordability is at the lowest level in years.
  • Interest rates are at record lows and, while obtaining financing is currently somewhat of a challenge, lenders are expected to ease up on their lending policies and make financing more readily available. The government is already pushing a rule change for Fannie Mae and Freddie Mac to have them loosen their underwriting guidelines.
  • Richard DeKaser, Contributing Economist to The Kiplinger Letter, in a recent article cited three reasons why he felt supported being optimistic, or “Bullish”, on the housing market:
    • Affordability – it now takes 18 percent of the typical household income to afford a home, compared with a long-term average of 26 percent.
    • Consumer confidence – says that consumers are beginning to take on expensive, long-term commitments.
    • Credit conditions will ease up – The Fed Reserve’s April survey of senior loan officers show banks were reporting “essentially no change” in their underwriting standards on mortgages over the past three months. (so I guess since it didn’t get worse that is good)

Here’s what the “Bears” say:

  • The recent upward spike in home sales is, for the most part, nothing more than the temporary and artificial market that was created by the government’s home-buyer tax credit program.
  • While recent reports have shown that the rate of increase of mortgage delinquencies and foreclosures has decreased over the past couple of months, we are still at record levels of both which will continue to flood the market with foreclosures and REO’s.
  • Even during the recent uptick in home sales brought on by the expiring tax credits, home prices still dropped in many markets. This shows there is still some uncertainty about home values in the market place, which, coupled with the downward price pressure caused by foreclosures, will continue to put heavy negative pressure on home prices.
  • The rate of unemployment is still high and our economy still has many challenges: off the charts spending and debt by the Federal govt, States and Cities struggling to balance budgets not to mention the international issues brought on by lagging economies in Europe and China, Greece’s financial issues and so on.

So what it is, a Bull or a Bear coming our way?

Remember, I’m in the real estate business, I WANT it to be a bull. But….here’s what I see coming…


Print Friendly, PDF & Email

68 comments to Where is the housing market headed in 2010?

  • Hmm it looks like your site ate my first comment (it was super long) so
    I guess I’ll just sum it up what I had written and say, I’m thoroughly
    enjoying your blog. I as well am an aspiring blog blogger but I’m still new to the
    whole thing. Do you have any points for novice blog writers?

    I’d certainly appreciate it.

  • … [Trackback]

    […] There you will find 31310 more Information to that Topic: stlouisrealestatenews.com/real-estate-market/real-estate-market-general/where-is-the-housing-market-headed-in-2010/ […]

  • Hello, i think that i saw you visited my weblog thus i came to “return the want”.I’m attempting to in finding things to enhance my website!I assume its adequate to make use of some of your ideas!!

  • Hi, I do believe this is a great web site. I stumbledupon it ;) I am going to revisit yet again since i have saved as a favorite it. Money and freedom is the greatest way to change, may you be rich and continue to guide other people.|

  • Hi there i am kavin, its my first occasion to commenting anyplace, when i read this paragraph i thought i could also create comment due to this sensible article.|

  • Hi everyone, it’s my first pay a visit at this web site, and piece of writing is in fact fruitful for me, keep up posting these types of articles or reviews.|

  • … [Trackback]

    […] Find More Information here on that Topic: stlouisrealestatenews.com/real-estate-market/real-estate-market-general/where-is-the-housing-market-headed-in-2010/ […]

  • I couldn’t resist commenting. Perfectly written!|

  • … [Trackback]

    […] Find More to that Topic: stlouisrealestatenews.com/real-estate-market/real-estate-market-general/where-is-the-housing-market-headed-in-2010/ […]

  • This post is actually a pleasant one it assists new internet users, who are wishing for blogging.|

  • Saved as a favorite, I like your web site!|

  • Pretty part of content. I just stumbled upon your web site and in accession capital to say that I acquire in fact enjoyed account your blog posts. Any way I’ll be subscribing on your augment and even I success you get entry to constantly fast.|

  • Very nice post. I just stumbled upon your weblog and wanted to say that I’ve truly enjoyed browsing your blog posts. In any case I will be subscribing to your feed and I’m hoping you write again soon!|

  • Everyone loves what you guys are usually up too. This type of clever work and exposure! Keep up the superb works guys I’ve included you guys to my personal blogroll.|

  • A person essentially lend a hand to make significantly posts I might state. This is the first time I frequented your website page and up to now? I amazed with the research you made to create this actual post incredible. Fantastic task!|

  • After looking into a handful of the articles on your website, I honestly like your way of writing a blog. I saved as a favorite it to my bookmark website list and will be checking back in the near future. Take a look at my website too and tell me what you think.|

  • Glad to be one of many visitors on this amazing website : D.

  • I was wondering if you ever thought of changing the structure of your website? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having 1 or two pictures. Maybe you could space it out better?|

  • I enjoy what you guys are up too. This sort of clever work and exposure! Keep up the superb works guys I’ve added you guys to my personal blogroll.|

  • Your way of explaining everything in this article is really pleasant, all can effortlessly understand it, Thanks a lot.|

  • Yeah bookmaking this wasn’t a speculative decision outstanding post! .

  • hey there and thank you for your information – I have certainly picked up anything new from right here. I did however expertise several technical points using this web site, since I experienced to reload the web site many times previous to I could get it to load properly. I had been wondering if your hosting is OK? Not that I’m complaining, but slow loading instances times will very frequently affect your placement in google and could damage your high-quality score if ads and marketing with Adwords. Well I’m adding this RSS to my e-mail and could look out for much more of your respective interesting content. Ensure that you update this again very soon.|

  • It’s a shame you don’t have a donate button! I’d definitely donate to this outstanding blog! I suppose for now i’ll settle for book-marking and adding your RSS feed to my Google account. I look forward to fresh updates and will share this website with my Facebook group. Talk soon!|

  • Can I simply just say what a relief to discover somebody who really knows what they’re talking about on the web. You certainly realize how to bring an issue to light and make it important. More and more people need to read this and understand this side of your story. I was surprised that you aren’t more popular because you certainly have the gift.|

  • … [Trackback]

    […] Info to that Topic: stlouisrealestatenews.com/real-estate-market/real-estate-market-general/where-is-the-housing-market-headed-in-2010/ […]

  • excellent post, very informative. I’m wondering why the other specialists of this sector don’t realize this. You should continue your writing. I am sure, you have a huge readers’ base already!

  • Wow, amazing blog layout! How long have you ever been running a blog for? you make running a blog glance easy. The full glance of your site is fantastic, as neatly as the content!

  • Hi there, I discovered your web site by means of Google even as searching for a similar subject, your site got here up, it appears good. I have bookmarked it in my google bookmarks.

  • I am glad to be a visitor of this unadulterated web blog! , regards for this rare info ! .

  • An intriguing discussion is worth comment. I do believe that you ought to write more about this topic, it might not be a taboo matter but usually folks don’t speak about such topics. To the next! Many thanks!!|

  • WOW just what I was looking for. Came here by searching for meta_keyword|

  • Hmm it looks like your site ate my first comment (it was super long) so I guess I’ll just sum it up what I had written and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog blogger but I’m still new to everything. Do you have any helpful hints for novice blog writers? I’d certainly appreciate it.|

  • Hello, i feel that i saw you visited my blog so i came to return the choose?.I am trying to in finding things to improve my site!I assume its ok to make use of some of your ideas!!|

  • great publish, very informative. I’m wondering why the other specialists of this sector do not notice this. You must proceed your writing. I’m sure, you’ve a huge readers’ base already!|

  • What i don’t understood is actually how you are not actually much more well-liked than you may be now. You are very intelligent. You realize thus significantly relating to this subject, produced me personally consider it from so many varied angles. Its like women and men aren’t fascinated unless it is one thing to accomplish with Lady gaga! Your own stuffs excellent. Always maintain it up!

  • I very like this blog. Everything is cleared.

  • Dead indited subject material, regards for selective information.

  • Hi it’s me, I am also visiting this web site daily, this website is really nice and the people are in fact sharing good thoughts.|

  • Generally I don’t learn post on blogs, but I wish to say that this write-up very compelled me to check out and do it! Your writing style has been surprised me. Thank you, very great post.

  • You can certainly see your skills in the work you write. The world hopes for more passionate writers like you who aren’t afraid to say how they believe. Always go after your heart.

  • Wow, superb blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your web site is excellent, let alone the content!|

  • Hi there! Someone in my Myspace group shared this website with us so I came to check it out. I’m definitely enjoying the information. I’m bookmarking and will be tweeting this to my followers! Outstanding blog and superb style and design.

  • I have been exploring for a little for any high quality articles or weblog posts on this kind of space .
    Exploring in Yahoo I at last stumbled upon this web site.

    Reading this information So i am glad to exhibit that I’ve an incredibly good uncanny feeling I discovered just what I needed.
    I most surely will make certain to don?t put out of your mind this website and give it a look regularly.

  • Hey there this is somewhat of off topic but I was wondering
    if blogs use WYSIWYG editors or if you have to manually code with HTML.
    I’m starting a blog soon but have no coding knowledge so I wanted to get advice from someone with experience.
    Any help would be greatly appreciated!

  • Wow, marvelous blog structure! How lengthy have you been blogging for?
    you make running a blog look easy. The entire glance of
    your site is great, let alone the content!

  • g

    I’ve been browsing online more than three hours today, yet I never found any
    interesting article like yours. It is pretty worth enough
    for me. In my view, if all website owners and bloggers made good content as you
    did, the internet will be a lot more useful than ever before.

  • I am sure this article has touched all the internet users, its really really fastidious piece
    of writing on building up new blog.

  • Great article. I am going through a few of these
    issues as well..

  • Dead composed written content, Really enjoyed looking through.

  • It’s impressive that you are getting thoughts from this piece of writing as well as from our argument made here.|

  • Somebody necessarily assist to make significantly posts I would state. That is the first time I frequented your website page and thus far? I amazed with the research you made to make this particular post extraordinary. Great task!|

  • I think everything said was actually very logical. But, think on this, suppose you typed a catchier title? I ain’t saying your content isn’t solid, however suppose you added a headline to possibly get a person’s attention? I mean BLOG_TITLE is a little plain. You could look at Yahoo’s front page and watch how they write post headlines to grab people to click. You might add a related video or a related pic or two to get people interested about what you’ve got to say. In my opinion, it might make your blog a little bit more interesting.|

  • Aw, this was a really nice post. Taking the time and actual effort to create
    a top notch article… but what can I say… I procrastinate a lot and don’t seem
    to get anything done.

  • Hi there everybody, here every one is sharing such familiarity, therefore it’s
    fastidious to read this web site, and I used to pay a quick visit this website everyday.

  • Hey there, I think your site might be having browser compatibility issues. When I look at your blog in Opera, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, terrific blog!

  • This internet site is my aspiration, really fantastic style and design and perfect written content.

  • A powerful share, I simply given this onto a colleague who was doing slightly evaluation on this. And he the truth is bought me breakfast as a result of I discovered it for him.. smile. So let me reword that: Thnx for the deal with! However yeah Thnkx for spending the time to debate this, I feel strongly about it and love studying more on this topic. If potential, as you change into experience, would you thoughts updating your blog with more details? It is extremely helpful for me. Massive thumb up for this blog publish!

  • Please let me know if you’re looking for a author for your weblog. You have some really great articles and I believe I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some content for your blog in exchange for a link back to mine. Please send me an e-mail if interested. Kudos!

  • I got good info from your blog

  • Sweet blog! I found it while surfing around on Yahoo News. Do you have any suggestions on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Appreciate it

  • I love your writing style genuinely loving this web site.

  • of course like your web-site however you need to check the spelling on several of your posts. Many of them are rife with spelling issues and I to find it very bothersome to tell the reality nevertheless I will definitely come again again.

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>