What’s ahead for 2011???

Wow!!  It’s almost the end of January and boy did it fly by.  Since the beginning of the year, the rates have been going up.  In November of 2010, the 30 year fixed loans were at a 40 year low of 4.17% the 15 year rate was 3.57%.  Now it’s at 4.8% and the 15 year rate is 4.09%.  I don’t think we will ever see the November rates ever again.  There will probably be less borrowing, in 2011, due to the economic conditions.

So what do you think prices of homes will do?  Well, most of the country will continue to see declines or stablize in prices except for 10 cities.   Unfortunately, Florida and parts of the Western parts of the US will see the largest drops in home values. 

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Things can’t get any worst or can they?

Home prices dropped 4.1% annually, in 2010.  Although there was an increase in prices, overall  70% of the major market prices experienced a decline and 8 had double digit declines.  There were 6 markets in California that managed to have some price gain. 

Unfortunately, 2011 will probably be the same, unless unemployment and distressed homes decrease.   Until there are more jobs and less people loosing their homes, we will not see too many price gains.

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