Welcome to 2010, a New Decade

Many journalists, Wall Street Moguls and Main Streeters are referring to the past 10 years as "The Lost Decade" NAR reported last week that 2009's median price for a home was $172,600 - supposedly up 25% from a decade ago when the median price of a home was $137,600 in 1999. But as CNN Money pointed out recently, if you consider the cumulative effect of inflation the median price of a home in 2009 is actually 3% lower than in 1999. This is good news and good times for anyone who may still be employed! Friends of mine will close on their first home in two days. A top-floor (penthouse) loft in a recently-build complex in the City of Angels. Like many homes, it has been vacant for months due to foreclosure but for the price they paid - this is going to have an excellent increase in equity and will provide an excellent down payment on their next future home. But for those who still cannot enter the housing market, please do not fret. If you recall Citigroup suspended its foreclosures for 30 days last month. At the time (Dec 18, 2009) this was going to relieve 2,000 borrowers scheduled to foreclose and 2,000 borrowers who were to receive notice of foreclosure..... approximately 20% of Citigroup's mortgage servicing and lending portfolio. Take a moment to consider all the other mortgage companies and borrowers who are in default and approaching foreclosure..................... get the picture? There's going to be a glut of inventory in the housing market for years to come. We are certainly near the bottom of the market so if you intend to BUY LOW, now is the time to make contact with a REALTOR you trust and begin creating a plan of action for your house hunt. Email me for more information.