2011 Real Estate Forecast

2010 ended as it has been all along…a mixed bag of up and down with a steady trend toward a slowly improving economy.  The Case-Schiller index showed that prices in the 20 major cities it tracks have fallen 1.3% month to month in October and .8% year to year.  Colorado has seemedto buck this trend though.

So, it’s a slight pull back, but, before you start talking about a ‘double-dip’ in the housing market, remember that house prices are based on job growth and this week we saw jobless claims fall to their lowest levels since July of 2008.  This push-pull between an improving economy and the overhang of foreclosures will continue into 2011 but nationally, look to see the house price trend reverse itself and become positive again come spring.

Use our map search tool to find all Denver area homes for sale.

 

So, what is ahead for 2011?  A slow but steady digging out from our economic downturn;

Housing prices stabilizing and slowly increasing in value in all but the most hard hit job markets;

and rates likely ticking up slightly as the year progresses ending up in the high 5% – low 6% range.
So housing affordability, while not quite as good as 2010, will still be excellent.  Combine that with a steadily improving consumer mindset (confidence)and 2011 should be a pretty good year.

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About dherries
Dave and Sally Herries and The RealtyColorado Team - Real Estate Broker serving the metro-Denver area. Offering properties in urban, sub-urban and rural areas. Our mission statement is "Enriching lives through real estate."

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