Real Estate Predictions for 2009

We know that not even a fortnight is left for the New Year to arrive. People are busy with their preparations to celebrate Christmas and welcome New Year in a grand way. But at the back of their minds there are several queries and thoughts regarding the financial scenario in the coming year: What will be the effect on Real Estate market? Whether banks will pursue foreclosure? Will they modify the existing loans?...

These are some of the real estate predictions for the year 2009 as predicted by some of the realtor experts and news channels.

• There will be a rise in the number of foreclosures. Banks will prefer to foreclose rather than revise or modify the loans, which will result in increase in the number of tenants than home owners.

• The existing home prices will highly depend on foreclosures. As the foreclosures start going down, the home prices will go down as well, and vice versa.

• Continuation of slow down in homes sales. According to the statistical records provided by National Association of Realtors (NAR), 2008 proved out to be the third consecutive year in which the home sales have fallen.

• There will be a decline in the number of Real estate agents and brokers. This is mainly due to the downfall of real estate market and also nowadays internet makes it easier for people to do any real estate transaction.

• The experts predict that the mortgage rates will definitely increase but won’t be more than 8%.

• The increase in demand will affect the rental rates. It will go up drastically since new constructions will grind to a halt. A perfect time for all the landlords.

• More and more agents will increase their commission rates. Due to the availability of lesser homes to be sold, they will take the benefit of buyer’s market.
  

• Last but not the least the Internet will become much more effective than the agents. More and more people will opt for buying or selling a property through internet, instead of relying on the agents.

Please do give your advises or any suggestions that you think will be helpful here, or if I have missed out on any important factor.