2010 wasn’t the best year for the real estate market. After the short bump in sales due to that stimulus package, we saw relatively dismal numbers across the nation when the tax-credit was no longer available. Which means, realtors, FSBOs, and the real estate inclined are looking forward to the new year: a year of hopes, dreams, the realization of one’s true potential – hey, you might even sell a house too.
So as with all end-of-year lists, so too come the beginning of the year predictions and for the most part, things are looking okay. If you happen to live in the hard-hit areas of Southern California – a state not only swimming in shadow inventory and foreclosures, but also massive debt problems – you’ve got something to look forward to. It was projected by the Local Market Monitor, a North Carolina-based research firm that studied patterns and cycles in over 315 real estate markets across the nation, that those So-Cal metro areas (San Diego, Santa Ana, and San Jose) which faltered so hard last year look good for a comeback.
On the contrary, Florida cities that suffered greatly will remain so for the most part in the coming year, along with several western cities. “The big difference between Florida and Southern California … is people are moving into Southern California, but they’re not moving to Florida.” That’s Local Market Monitor President Ingo Winzer on why these two regions will fare so much differently in the coming year. Flordia property markets pertain a great deal to second homes and retirement homes. These properties are increasingly hard to maintain financially and increasingly harder to sell. However, the California markets are attracting newcomers, for their attractive city culture and the growing job markets.
This harkens back to much of what was said in late 2010: the real estate market is fatally linked with unemployment rates and income levels.