Economists predict growth in 2011, according to an article in the Washington Post on New Year’s Eve.
One of the factors used was that the National Association of REALTORS(R) (NAR) stated that pending home sales were up 3.5%, showing that more buyers are moving into the real estate marketplace, and a sense of confidence about future home prices rising.
The Washington Post article by Neil Irwin also states that many consumers are paying down their debt, and lenders are loosening their credit availability, also adding to the ability of potential homeowners to buy houses. They do think that residential housing still won’t be a huge factor in the growth, saying,
Few forecasters are expecting major improvement in the housing sector, which has been a drag on the economy for four straight years. But neither does housing appear set to be a major drain on growth. Residential investment constituted its lowest proportion of overall economic activity on record in the third quarter, meaning that even if it were to contract a bit, it would have little impact on growth.
There also is a glut of houses in foreclosure, waiting to be released for sale. Banks have estimated these to be in the millions. This year, we do not expect to see housing prices rise in the spring as in the past, as I discussed in my post,”Will My Timonium House Be Worth More in the Spring?”
So what does this mean?
It means we it appears we are in the beginning of recovery in our recession. This takes time.
It also means that sellers need to be aware that low prices are what are driving buyers into the real estate market. To sell your Baltimore County home, you need to be priced aggressively and show beautifully.
For more information on your Baltimore County neighborhood, contact me. I am happy to help!