Trulia CEO offers predictions for 2010
by Margaret Jackson on December 23, 2009
As 2009 draws to a close, Pete Flint, chief executive of the real estate web site Trulia, offers the following predictions for the new year:
* We will continue to see lots of volatility in the housing market through 2010.
* Three major factors will contribute to the drop off in the second half of the year: Government intervention will disappear; shadow inventory will hit the market; and mortgage rates will rise.
* The tax credit has not created new demand, only pushed demand forward to the beginning of 2010.
* When the tax credit runs out, interest rates creep up and more inventory hits the market, we can expect prices to drop once again.
* Sales volume will be flat compared to 2009 (5 to 5.5 million homes).
* Prices will drop another 5 percent to 10 percent.
* Inventory levels will creep back up.
* Mortgage rates move back into the range of 6 percent.
Posts
