U.S. ECONOMY FOR 2010
The Stock market will continue to gain while it remains unstable (loss/gain) until we pass the summer (two steps forward, one step backward). Some news during the spring 2010 about some financial personalities involved in scandals will create concerns again and shake up the public trust regarding financial institutions, big corporate power and the government ability to police unethical practices (I feel we may hear about the automobile industry again!). Nevertheless the stock market seems to experience a fast and positive turn around in the course of 2010 which will reassure a lot of investors and the public in general.
New economical data will point to a slow but clearer recovery during the first part of the year however the job data won’t be looking much better than where we are now. Stopping job losses won’t make the general people more optimistic. It is going to take October 2010 to see a change of mood, a distinct sense that the U.S. economy is indeed rebouncing with a brighter 2011 to make everyone spend again and get the machine going.
THE U.S. REAL ESTATE MARKET FOR 2010.
Home sales will increase significantly in 2010 but those transactions will show new emerging, future hot R.E. markets that will create a new properous momentum, however different to the past R.E boom. Since not all markets will be affected in the positive, I need to be specific as this may be great opportunities for those of you who want to invest:
- smaller houses, condos and townhomes will be the next hot market particularly if they are located in cute neighborhood served by small boutique shops and services and if they are reasonably priced. Think nice downtowns, easy access, mass transportation and mixed used areas. Expensive lifestyle metropolis may not benefit from this renewal if they don’t offer affordable living solutions! Cheaper states that have quaint cities and innovative lifestyle solutions will benefit the most…
- larger houses, isolated properties, under-served locations will be left out of that nice upswing.
- large commercial properties in general will not benefit from the positive turn.
- mixed used commercial lots and well positioned commercial properties will become sought-after investments.
This is not just a short term trend. This will be the beginning of several years of expansion and only in some parts of the country, in cities that provide the ideal environment to attract those buyers (think a quaint and well thought city planning). People will buy cheaper, smaller and more convenient (walking, biking distance).
Note for R.E. professionals: I will strongly suggest that you position yourself to take advantage of this new wave of prosperity and particularly if you are right now focusing on the markets that I believe will stay on the flat line. You do not want to be left out!
For anyone: be prepared to hold on to your property for another 6 to 8 years before making a profitable sale! If you are going to invest in R.E., think about getting into mixed used market and pay attention to the location (how it looks and the services/stores). Don’t buy big (unless you have 10 kids!) and don’t buy a large estate in the country (unless you can deal with the fact that you won’t be selling it easily afterward!).
http://www.blogtalkradio.com/michael-dunlap

