Real Estate Predictions for 2008

As we turn into 2008, it is time to peer into the old crystal ball and make predictions regarding what will happen with real estate in the coming year. Rub a dub, dub…and what do we see? 2008 will most likely be a year of consolidation in the real estate market. We will continue to see foreclosures and dropping prices during the first half of the year as all those hybrid loans reset interest rates. Don’t kid yourself. The recent “mortgage bailout” agreed to between lenders and the government will not provide much help. The good news about 2008, however, is we should be able to see the light at the end of the tunnel by the end of the year. We will have filtered through most of the bad loans, which means foreclosures and default rates should be dropping by the end of the year. When that happens, all signs point to a real estate recovery. Perhaps it will even come before the end of the year. In short, hang in there!