Recently we have been seeing new trends in today’s real estate market. First time home buyers are dominating the market these days, due to the collapsed economy we have endured this last year. The ominous tell tale signs that the market will be picking back up is evident by the amount of new programs available within the mortgage and real estate world. The average selling price in El Dorado County is approximately $450,000. This is a 25%-30% drop from last year’s market watch. Another explanation for the new trends within today’s market watch, are the reasons pertaining to why people need to sell their homes. The unemployment rate is largely to blame, so people will either try to do a short sale on their home in order to downsize and save their financial status, or just let their home go into foreclosure. The short sales, which are now becoming a new trend in today’s real estate market, give the seller kind of a last ditch effort in an attempt to reclaim any money for their home to save their financial standing, and to stop it before it becomes bank owned. Then again, those people will be usually buying another property that is downsized and cheaper; again adding to the influx of this buyers market. A short sale is normally the first plan of action the owners will take; but because they are not a traditional real estate transaction it takes a lot longer to execute the procedure. Another hot trend right now is the ‘greening’ of U.S. homes. This incentive has been booming because it offers numerous tax breaks to individuals who decide to buy a ‘green’ home, or to those who decide to make green improvements at their existing homes. According to the National Association of Home Builders, expanded tax credits for energy-efficient home improvements in the new economic stimulus package puts more money in consumers' pockets by providing financial incentive for home owners to go green on their renovation projects in 2009 and 2010. While more efficient homes save on water and energy bills, these tax credits will make such home upgrades even more affordable. (Mosca, 2009) The list for energy efficient appliances and improvements has almost tripled since last year. More and more people are being rewarded for their ‘greener’ efforts in helping not only the economy but also the environment.
So let’s keep these trends going in order to stimulate and maintain our real estate market.
