Housing Outlook 2011

Reports show that our nations slow economic growth and high unemployment rate is fueling America’s foreclosures and low home values. The brunt of the foreclosure effect will continue to plague the locations that experienced the greatest inflated markets during the good years.

Moody’s Analytics chief economist Mark Zandi believes

the job market will begin to turn around by mid to late 2011. And the Federal Reserve will ensure that mortgages stay dirt-cheap at least until employment picks up again. Zandi says that the best reason for a bit of optimism is this: With few exceptions, the market is fairly valued based on the relationship of home prices to income and apartment rents. Some markets have actually become undervalued, which will attract more buyers and investors.

In Yamhill County we could see an improvement earlier than mid to late 2011 based on good local economic news, a change in direction for the economy, and improving employment numbers (even more so in McMinnville). If there is a change of mood, a building of confidence about the future, and a softening of the fear factor, we could come out of this faster than other markets (e.g. Las Vegas, Florida, etc.). I think we will not get completely back to ‘normal’ until we see the California markets freed-up to send their retirees north, and the people who are tired of California’s volatility to a new land of opportunity. If this market is not for you then you can take a look at different markets such as Lenexa, KS, and you can click to visit site here, where you can navigate around the page and find your dream home and see what real estate is available for you – how exciting!

I am greatly encouraged by Intel’s decision to invest in Hillsboro, Oregon and bring thousands of construction jobs to our area.

Let’s toast the New Year with optimism and hope for an improved economy and well-being for Yamhill County’s home sellers and buyers.

Randy McCreith, Bella Casa Real Estate Group Broker & Owner