2009-2010 Real Estate - What we had what to expect!

2010: The year of Growth

If 2009 was the year of economic recovery, 2010 will be the year of growth.

Existing-home sales in 2009 rose to an estimated 5 million units for the year, a 2 percent increase over the 4.9 million sales in 2008. For 2010, NAR *National Association of Realtors are forecasting sales of 5.7 million units, a 13.6 percent increase.

The key to recovery in 2009 was the lower end of existing-home market. Fueled by the huge number of distressed sales - which drove down prices and returned buyers to the market looking for bargains. Also helping were continuing low interest rates and the extension of the first time home buyer credit.

A look back at 2009 and a glance into the Future: (2009 Estimated & 2010 are projected numbers.)

Economic Indicators:
Inflation Rate 2009: -0.4% 2010: 1.6%
Unemployment rate 2009: 9.3% 2010: 9.8%

Housing:
Existing-Home Sales
Sales (in millions) 2009: 5.011 2010: 5.694
Prices: 2009: $172,600 2010: $178,800
Change (in price) 2009: -12.9% 2010: 3.6%

New Home Sales
Sales 2009: 397,000 2010: 549,000
Prices 2009: $211,100 2010: $219,900
Change (in price) 2009: -9.0% 2010: 4.2%

Affordability Index 2009: 166 2010: 147

Inventory:
Housing Starts 2009: 564,000 2010: 752,000
Month's supply 2009: 8.5 2010: 8.0


Please keep in mind that the San Francisco/ Bay Area is a different market. We have seen home prices rise in the past 6 months in the San Francisco Area. We are seeing multiple offers on properties well priced, good condition and great locations.