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The Housing Market in 2011

Soon after the housing market went south in 2006, I found myself moving to South Florida. I knew I didn’t have any money then, so I didn’t even think about entering the land of property ownership, but when I got married in 2009 and saw the market at an all-time low, I got house hungry.

We looked at a few townhouses and a couple of condos (houses were still selling for $250,000, so we didn’t even look at those), and I remember nearly putting in an offer on a very nice 2 bedroom, 2 bath townhouse. The only problem: we had two school loans and absolutely no savings. We decided not to throw our money away with the FHA loan and found a reasonable rental instead.

Looking back, I’m actually glad we made that decision. That property has decreased in value by 10% since we looked at it, and according to the article in CNN Money, it might go down another 5% in 2011.

This shouldn’t really be a big shocker to anyone. The job market is still pretty soft (have you looked at the job postings lately? They’re incredibly scarce), and when there aren’t jobs, people tend to fall behind on those mortgage payments, which inevitably leads to foreclosures and decreased home values.

Also, the first-time home buyer incentive is now over, and if anyone was in the market to buy a house in the last couple of years, they probably would have done it by now. With a lack of buyers, homeowners are forced to sell their properties for even less, which also drives down the value of the housing market.

So, if you are still in the market to buy a home, don’t get antsy like me, there’s still time. The loan rates may increase slightly, but they aren’t expected to rise any higher than 5% by the end of 2011(this percent is in reference to the 30 year loan, which is currently around 4.4%). Take the extra time to save up a little more money toward that down-payment and really search for that perfect home at a wholesale price. I’m glad that we waited. It’s going to feel great to be debt-free before moving in to that perfect home.



My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

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