The company coach for Bob Parks Realty, Bud George, has been road-tripping these last two weeks sharing his thoughts on industry trends and the market forecast for 2010.

The best news is that a portion of the Middle Tennessee area (Rutherford and Wilson Counties, specifically) are in the blue collar housing market. This means that homes were built for regular people and so they remain affordable, available, and may begin appreciating in value again soon. As the job market finds steady ground, the inventory is expected to eventually decrease while prices for houses valued under $200,000 should start coming up.

Unfortunately, short sales and foreclosures will remain as a key component of home sales in 2010. Another final round of adjustable rate mortgage loans are coming up this year, so people who are barely making payments now won’t be able to afford them when their payments increase. It is anticipated that in the coming year, 25 to 30 percent of homes available will be bank owned or have a bank involved. This opens the market for investors who will represent 20 to 25 percent of buyers in the coming year.

In good news, interest rates will remain low but Bud expects them to slowly increase. They will hopefully remain under 6 percent in 2010 and not go higher than 7 percent by 2011.

2010 should be a very interesting year for both the residential and commercial real estate markets. My hope is that we’ll see the housing market regain its firm footing and see some healthy growth.

Posted by:Kathy Tyson

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