Notes from a presentation given by the chief economist of the National Association of Realtors:
1. The market is at the bottom. For those who have been waiting, this is it!
2. Mortgage defaults will continue. For buyers this means prices should stay at a bargain for at least a little while.
3. Foreclosures are moving up the ladder. People who are underwater on their mortgages may walk away rather than keep paying.
4. Mortgage rates are going to rise sometime. As the market gains strength, rates will rise to combat inflation.
5. The buyer’s market won’t continue in all areas. Inventories are starting to shrink.
6. There may be a new loan modification plan coming down the pike. The present one isn’t working as well as hoped.
7. FHA may tighten their standards. Possibly FHA will start requiring a higher down payment.
8. The overall recovery will begin showing in the last half of 2010. (Although there are other experts who say just the opposite.)
9. The tax credit will not be extended again.
10. Residential real estate will start to recover, but commercial real estate and lending will likely not recover until 2012 or after.
