It is the last day of the year and what a year it has been. . . maybe that is enough to say about 2009.
Usually I resist the temptation to make predictions for the new year but this year I feel pretty confident about what next year will bring, at least when it comes to the local real estate market.
2010 is going to be pretty much like 2009 was except by the end of the year the interest rate is going to be higher than it was at the beginning but lI think it will remain fairly low.
The tax credits being offered to home buyers will continue to give our housing market the boost that it needs but as soon as the tax credit expires home sales will drop.
There will be foreclosures this year it is hard to tell how many. I have read reports that indicate that the foreclosure rate will be as high or higher than it was in 2009. We are in better shape than we were at this time last year because the inventory of homes on the market is very low, so low that I think home prices will stabilize. I will predict that home prices will remain fairly stable this year.
The local housing market is part of a much bigger picture. If the unemployment rate continues to go down then home sales will go up. People who don't have jobs can't buy houses and those same people are of course more likely to have trouble making payments if they already own a home.
For some 2010 will be a good year to buy a home. They will be able to take advantage of the tax credit and will be able to find a home for a very reasonable price. For those who are planning to sell there is and will be less competition on the market. Like last year the lowest priced homes will sell quickly, while higher priced homes will take months or all year to sell.
If some kind of new legislation is passed or a natural disaster or the stock market tanks again nothing I wrote here will mean anything which is why I usually don't bother with predictions for the new year. There are just too many variables.
Most of the predictions for the new year will be that it will be about what a wonderful year it will be and how everything will turn around. I would like to make a prediction like that myself but based on current information I am not seeing a turn around on the horizon. That could all change and just like everyone else I hope it does.
The commercial real estate market is really hurting. There are many vacant store fronts all over town. Those represent businesses that are no more. Car dealerships that no longer exist and small businesses. Small businesses are vital to our local economy. If you go out tonight to ring in the new year please consider going to a neighborhood restaurant or bar. We have so many wonderful places to eat and drink right here in St. Paul, Minnesota.
Here are a couple of local New Years Eve events that are family oriented:
- An early evening Sparkle-rama New Year's Eve party at the Minnesota Children's Museum is a celebration for tots in downtown St. Paul from 6.30 – 8 p.m.
- Como Zoo celebrates "Noon" Year's Eve with a countdown to midday.
- The downtown St. Paul ice rink is open until 1:00 AM
- Minnesota Wild will be playing the Los Angeles Kings at the Xcel Energy Center. The game starts at 7 p.m. on December 31.
Have a great night out or in!
