It’s almost a new year, so let me make some specific and bold
  predictions about real estate sales in 2011.  Sales, compared to 2010, will
  be greater in January, about the same in February and will be less in March,
  April and May.  What does this mean about the state of real estate and where
  we will be after the first half of 2011?  The answer is, absolutely
  nothing.  In case you are wondering why I’ve started this month’s Market
  Watch as I have, let me explain.  The real estate market has experienced two
  tax credits that have expired since November of 2009.  In both cases the tax
  credits boosted, then slowed real estate transactions.  My predictions only
  reflect the reality of the real estate market returning to normalcy, without
  unusual stimulus.

       The national press will be full of articles discussing significant year
  over year changes in the real estate market.  Don’t be fooled by assuming,
  based on these articles that there are really big changes occurring in real
  estate sales.  We will not really have meaningful year over year information
  until July of next year.

       My advice for now would be to take advantage of very low interest rates
  that are sure to rise. Home prices locally have already stabilized, in fact
  the average sales price in our market has climbed from $117,592 for all of
  2009 to $122,430 through the first eleven months of 2010. If you or someone
  you know does not currently own a home, and is financially qualified, there
  will not be a better time to buy in the foreseeable future. The net worth of
  a homeowner, on average, is 41 times greater than the net worth of a person
  who does not own his or her home.  If you are contemplating moving to a
  different home let me give you realistic expectations about the value of
  your current home and show you the cost of the home you would like to own.

       Kathy and I would like to take this opportunity to extend our best
  wishes for a joyous holiday season and a Happy New Year.