KNOXVILLE, TN - With some subtle signs of recovery in the housing market, the real estate industry is due to bounce back – but more challenges could lie ahead for buyers and sellers alike. HGTV's FrontDoor.com, an online real estate information service currently offering more than 4 million listings of homes for sale, identifies the top 10 must-know real estate trends for the coming year. View more at: www.frontdoor.com/top10
10: Cash is king. All-cash offers will become even more popular for foreclosures and short sales, as banks would rather get less money than deal with the hassles of loan transactions.
9: Smoother short sales. As lenders and real estate professionals become more accustomed to short sales (sales in which the proceeds are less than the outstanding debt), the process will become more streamlined and successful for all parties involved.
8: Tricky appraisal rules. Due to the government's Home Valuation Code of Conduct passed in May, property appraisals will be more expensive and take longer, sometimes hindering (or breaking) real estate deals.
7: A conflicted construction market. Though lenders are still reluctant to finance new housing projects for builders, there's a chance of double-digit increases in new construction next year (according to the McGraw-Hill Construction Outlook Report).
6: Rising mortgage rates. The Fed's effort to keep mortgage rates at historic lows is scheduled to end in March. Homebuyers should act now to capitalize on the lowest interest rates in years.
5: Lending standards still tight. With the subprime mortgage debacle in recent memory, lenders will continue to require stellar credit and thorough documentation from borrowers.
4: Some stabilizing home values. Nationally, the outlook for home values is good, with a rise in home prices during the last two quarters of 2009. Locally, however, many markets are a long way from full recovery.
3: More foreclosures to come. Though more homes will go into foreclosure in 2010, some homeowners will be able to lease back their property at market rental rates for a year's time, allowing more people to stay in their homes longer.
2: More buyers entering the market. The government's first-time homebuyer tax credit was extended to April 30 and to a broader range of buyers, which should bring even more buying activity to bear.
1: Still a buyer's market. As 2010 looks to be another year of low home prices and a robust inventory of homes for sale, it will still be the best opportunity for buyers to cash in on some great real estate deals.
FrontDoor.com is an online real estate information service powered by HGTV, the No.1 source for home-related media content. The site currently offers more than 4 million listings of homes for sale. In addition to providing users with the latest real estate listings, FrontDoor.com houses expert HGTV advice and videos along with original Web series and a comprehensive library of features, tools, guides and information.
Source: FrontDoor.com