2012 Predicitions for Southern Maryland Real Estate
This real estate prediction might just be the easiest one yet; If the world ends on December 21, 2012, I predict we will see an end to the housing crisis. Or if there are any impending disasters, Nevada real estate could see property values sky-rocket, as most of the western part of the State becomes Pacific coast water-front.
Sorry to joke about a matter that has plagued us for more than 4 years now. Humor will keep us sane.
There just doesn’t appear to be any light at the end of the tunnel. The real estate market remains sluggish, and indications are that we will continue to see much of the same. With the failure of a budget decision by the “Super Committee”, investors and potential home buyers will continue to be reluctant to jump into any kind of spending. Consumer confidence is on a roller coaster.
Freddie and Fannie are in a panic, and on the verge of going broke. And lending giant, Bank of America seems to be in a death spiral. I have heard rumblings that they might be getting out of the mortgage lending business all together. With all of the recent negative press and plunging stock values, I am certain that Warren Buffet is having a few restless nights lately.
In 2012, there will be plenty of “good deals” to be had by qualified home buyers. Short sales will remain popular for the next 8 to 10 years. The Charfin Institute, a National educational firm specializing in training real estate professionals on how to help their clients avoid Foreclosure, says that Bank owned properties will see a decline in inventory, while short sales will increase. A short sale is where a homeowners’ mortgage company will allow the sale of a home where the value of the home is less than the amount owed. As a result, the average real estate transaction will take about 4 months. Buyers and sellers will need a great deal of patience.
Additionally, look for a change in the way we live. There is an increase of multiple families and extended families living under one roof. And homeowners will be living in the same house for much longer than they did a few years ago. Without the ability to create fast equity, most homeowners will not be able to pick up on a whim and move. I predict a return to neighborhood values, where you get to know your neighbors and socialize with them again.
One thing is for sure; there will still be home buyers and there will still be home sellers. As you go into 2012 whether you are moving to another State, or preparing for the end of days, planning ahead is the key to surviving this maze of uncertainty.
