Wow! That's really a tough question to answer. Loans, appraisals, inventory, the stock market, the local and national and global news all affect what's happening on a daily basis in our market on the Central Coast of California. However, were I to venture a guess based on my own experience as a full-time Realtor here, this year will ultimately be better than last year. We will sell more homes and may see slight appreciation of values by the time 2010 is over.
Remember that interest rates have not been this low in decades! And although it is more difficult to obtain a loan, and by that I mean that the paperwork for a purchaser is twice as frustrating, lenders are still lending. And they WANT you the buyer, as a customer. Without YOU, they aren't making any money.
And sellers want you TOO! People have so many reasons for moving and in this market, sellers aren't listing their property unless they really NEED to sell. So buyers are very important to them. Everything I am showing, even short sale properties, are being dressed up and polished up as much as the owners possibly can. And if the listing agents are smart (lots of those in our Re/Max office), they are getting clearance on pest and dry rot issues, and major needed repairs completed before the homes are placed on the market. That's great news for buyers as well.
The biggest issues slowing down our market right now are lack of jobs and less liquid capital for making that purchase. No lack of desire for people to move here. And as the recession slowly "receeds" into history I predict that home sales in Central California will pick-up much more quickly than in other parts of this fine state and country.
So the news is not all bad. Make that move while low interest rates and great inventory are here!