Overall, the real estate market isn't expected to improve much in 2011. Interest rates are expected to remain historically low, which is a boon for potential home buyers, but compounded with credit and loan requirements that remain challenging those potential home buyers may find themselves declined for loans they would've otherwise been given. Additionally, in some markets home interest rates are going to increase slightly which means that you may be paying more over the life of your mortgage regardless of the true value of the home or the market. This can keep potential buyers from joining the market.

ARM resets are also looming on the horizon. One of the bigger catalysts for bringing down the real estate market in the first place were people who had signed up for adjustable rate mortgages and couldn't keep up with their payments after the first time that rate increased upward. For people who were able to hang on through that first rate increase, they are likely to see a second rate increase this year without necessarily seeing an increase in asset value or accessibility to their home's equity. Industry observers are concerned that this could set off a second wave of foreclosures forcing the overall market downward again after seeing modest gains in 2010.

Finally, the foreclosure fight is now in the courts which may mean even more changes to the rules governing the real estate market. After the first wave of foreclosures in 2008-2010 many of the larger banks were brought to court by homeowners hoping to stay in their homes by forcing the bank to produce the note. Many of these banks were unable to produce a note or had several fatal flaws in their mortgage paperwork which meant that they were unable to foreclose. In response to this, many banks froze foreclosures as they came under investigation. These investigations are expected to wrap up this year and may mean changes to the way the home buying process is handled going forward.

Despite all of this bad news, the housing market is still a buyer’s market. Even while the rules may change, interest rates are expected to remain historically low which can mean there are good deals available for home buyers. As people come to realize this, we may even see a slight uptick in demand which will help the economy rebound further. Affordable housing has always been the start of strong economic recovery in the United States.

First National Reality is pleased to announce the launch of our new website. We have enlisted the help of expert web designers and developers to create a more enjoyable user experience for you and help direct you to the content you need. We've added new, dynamic content areas that will be regularly updated so that you can stay on top of all of the local real estate information impacting you as buyers and sellers. 

The new, contemporary design will make content easier to read and find. You'll also enjoy our new gold and blue logo which has been designed to help us stand out from the crowd. Whenever you see our new logo, you'll know that the home you are looking at is a First National Realty home. Look for this logo whenever you are doing real estate business to find brokers and listings you know you can trust.

In addition to our new website, First National Reality is also now live on Twitter. Follow us on Twitter for the newest real estate information effecting Tennessee and Mississippi! Or, tweet to us with your questions or comments so that we can help you and keep improving. We look forward to hearing from you!