Real Estate Trends Indicate Recovery in 2011-Housing Market Forecast

The “out of towner’s” are ready to buy their dream home for nearly 1/2 of what they would have paid 5 years ago. In some areas, pricing has come down even more.

The biggest trend I’m seeing is that the majority of buyers are coming from the Northeast and Canada with cash in hand.

When you look at the price of housing here, it’s pretty much a no-brainer to buy your retirement home right now.  Even if you don’t plan on retiring, why not invest now while the market is at the bottom?

So how much can you buy a home for in Tampa?

The Forbes’ Cover Story for Feb 2011 says 30K.  Here’s our MLS listings for the Tampa Bay Area. which will give you an idea of what 30K will buy you.  It’s shocking to think that you can even buy a home or condo for that price.

I like to follow NAR’s Chief Economist, Lawrence Yun: Here’s his 2011 Housing Market Forecast…

Washington, DC, December 30, 2010

Pending home sales rose again in November, with the broad trend over the past five months indicating a gradual recovery into 2011, according to the National Association of REALTORS®.

The Pending Home Sales Index,* a forward-looking indicator, rose 3.5 percent to 92.2 based on contracts signed in November from a downwardly revised 89.1 in October. The index is 5.0 percent below a reading of 97.0 in November 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said historically high housing affordability is boosting sales activity. “In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” he said. “But further gains are needed to reach normal levels of sales activity.”

“If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume,” Yun said. “Credit remains tight, but if lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy.”

The 30-year fixed-rate mortgage is forecast to rise gradually to 5.3 percent around the end of 2011; at the same time, unemployment should drop to 9.2 percent.

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