A new decade has begun, and it is a perfect time to ponder all things to come—the world of real estate, is no exception. The real estate industry is dynamic and ebbs and flows with our economy. On a more personal note, “home is where the heart is,” and homeowners want to know the future of their most valuable asset.
Who better to ask than the professionals? For our real estate forecast, 2011, we ask four Realtors—each successful in a unique, regional marketplace—for their opinions on how it will all unfold.
Miami Beach, Fla.
Bryan T. Halda with Gray & Associates Properties Inc., www.BryanHalda.com
One word—churning—best describes my forecast for the nation’s 2011 real estate market. There will be lots of turnover and that means yeasty times for real estate agents.
Even if the economy had continued on its high road, Florida’s low-end condominium market was far over-built and destined for its 2010 tumble. The supply of new construction now has dried up and eventually demand will make the market well. But in 2011 there still will be bargains for lucky buyers.
And 2011 will be a year of significant changes in real estate. Government will continue to be a big factor with political attempts to create markets with government programs and underwriting. In so many regions of the country and in so many types of real estate, the buyer has had the strong hand in 2010. The momentum of that attitude will carry over through the first half of the new year.
The past few years have been shakeout time for agents and agencies. Those who have weathered the slow times have done so because they are the best of best. That cannot mean anything less than a great future for the survivors who will be serving buyers and sellers in 2011.
Carla A. Steuck with Crawford Group Sotheby’s, www.CarlaSteuck.com
I feel that the whole country is concerned about the deficit, which is paralyzing the minds of homebuyers. I am not an economist but I understand most are optimistic about 2 to 2.5 percent growth in the first part of the year and are predicting even more growth toward the end of the year.
In the Chicagoland (metropolitan Chicago), area homes will still be bought and sold. The flood of short sales and foreclosures will continue to impact the pricing. Unfortunately, business relocation is on a decline due to job losses in Illinois. Location plays a key role in what sells in these tough times. Otherwise, price is king.
I think that social media and Apple will continue to make significant advances and improvements in real estate marketing in the future. I hope that homebuyers, sellers, and Realtors understand that energy, experience, and positive customer service will be more important in 2011 than advances in technology.
In these slower times I will continue to design and create my real estate business around my past clients, referrals, and family.
Steve Haussler with Coldwell Banker Previews, www.Haussler.com
Overall, I believe the U.S. real estate industry will see a continuation of 2010, but with a slower slide down in prices. Some markets will be dominated by foreclosures, and the full extent of that may not be felt until the middle of this coming year.
There will likely be a very large number of homes on the market that have been taken back by banks. Some of these will be great opportunities for investors, others will not. But the question is how much effect the increasing supply will have on the local markets—and that is hard to predict right now.
Here in Southern California, with higher unemployment than much of the country, we still have a highly fractured market where some areas are truly in a decline, and others seem to have leveled out in pricing and sales. Still, I expect prices to edge down slightly, but most likely at a rate lower than last year.
We market and sell quality homes, some by famous architects, in an area that has been moderately hit by the recession, and work with buyers who want homes of this quality and style. It is a fun business, but I am glad 2010 is over!
Las Vegas, Nev.
Gene Northup with Synergy Sotheby’s International Realty, www.CallGene.com
Real estate in 2011 will be very exciting for the move up and investor market. Lots of opportunities will show themselves in 2011.
Las Vegas is presenting some outstanding values in the high-rise market, units available in the $250.00-$350.00 per foot range that cost $650.00 per foot to build.
In 2011 we are seeing neighborhoods recovering. While some neighborhoods "stalled" in terms of a recovery, a good real estate agent can provide detailed information on different neighborhoods.
The 2011 buyer will be a savvy, well-informed buyer. The seller will be a mixed bag, there will continue to be an amount of bank owned and controlled sales.
My hopes for the real estate industry in 2011? I’d like to see interest tax deduction left in place by this administration, stable interest rates, and increased lending by the banking Industry.