Goodbye or Good Riddance 2010? It depends!

As 2010 comes to a close, you can make many observations. Government is the last one into a recession and they are now arriving to this party as late as can be. We are all eating dessert. What I am saying is that the federal, state and local governments are now, and for the next few years, tightening their belts like never before because revenues are down and increasing taxes is not an alternative. Elections in November also proved a point that both sides of the aisle must become more fiscally responsible, like we’ve all had to do at home and at work.

Certain segments of the economy are climbing out, and some have continued to roll. Energy, medical, retail, auto, remodeling, research and technology are all sectors that are bouncing back. Housing in America will continue a slow rebound with more sales units but low sales volume expected in 2011. The short sale and foreclosure inventory will increase and new construction will rebound, assuring that there will still be downward pressure on pricing.
“Sell low, buy low” with predictable interest rates will be the game. If one has equity, it is the time to move because the race to catch the bottom passed in October. Interest rates are expected to rise 2 points and inventory will decrease, so the time to act is now.
Buyers’ confidence and job security will continue to get better with each passing day. Like the stock market, Americans are getting accustomed to the new price point in housing and commercial real estate pricing. The “reset button” is being pushed as we speak. When buyers, sellers, Realtors® and lenders all know what homes and neighborhoods are worth today, we can all move on with our lives and plan accordingly. Just like the stock market, it’s a paper loss in many cases and not an actual loss.
I feel very good about where the Carolinas are heading as well as America. Tough medicine in 2010 but we are resilient and we will be better for it as individuals, families, businesses, communities and government.