Happy New Year!

Whew! 2008 was quite a year here are some of my predictions for 2009.

• Historically low mortgage rates will be available for certain borrowers in Q1
• Mortgage rates will increase as the year progresses getting close to 7%
• Foreclosure inventory will dwindle
• Prices will start to bottom out but certainly not increase.
• The rift between prices of REO and non-REO condos will continue. SF and MF prices will have less disparity between REO and non-REO.
• Location and condition will become more and more important factors in price.
• Rents will decline/remain flat as more rental units come into the market as foreclosed properties are renovated and condo owners decide to rent vs sell.
• Renters will dictate the fee structure and will demand a no-fee rental inventory.
• Foreclosures will continue but will slow down, not because of lack of properties but rather legal wranglings and procedures, bank mergers and forced borrower work-outs that will ultimately fail but in the meantime delay the inevitable.
• Short sales will become easier as lenders focus on this low-cost alternative to foreclosure.
• Local lenders will become the power players in the mortgage market, mortgage brokers will have a tough time competing against direct lenders.

Some of these are no-brainers some are certainly a hunch. Let's see in 2010 how we did.