Published by: cleveland.com
By Linda Chojnacki

With the New Year upon us, many wonder, “Will the housing market rebound in 2011 and what type of trends will emerge?”

I went to the industry experts to get their feedback on what 2011 will hold for new and established homeowners in Northeast Ohio.

Technology
As technology continues to progress, online will continue to have a dominant presence in home buying.

“The online search is leading the way,” said Carol Woodard, Realtor with

RE/MAX Crossroads Properties. “Buyers now search online for six months or more before they ever contact a Realtor.”

“There is a definite need by all industry professionals to provide more Internet information and connectivity by introducing new vehicles that offer ready-at-hand information to buyers,” indicated Gary Naim, president of Petros Homes. “Social media, such as Facebook, allow industry professionals to connect with buyers and promote community events. I believe you will see an increased use of mobile marketing, Internet banner advertising, and enhanced social media applications. Buyers will definitely respond, and they appreciate the speed of delivery of information.”

“However, homebuyers still need to see, feel and touch the product, especially with the magnitude of the investment that they are considering,” stressed Bo Knez, president of B.R. Knez, Inc.

Interest rates
Naim feels that attractive interest rates and adjusted market values will continue to drive buyers in 2011.

“With interest at historic lows and the availability to buy down rates even lower, this is a tremendous opportunity for savvy buyers to get more for their money,” said Naim.

According to Woodard, rates should continue to hover around 3.99 to 4.3 percent.

“Every time I think they’ve hit bottom, they drop a little lower. For buyers who are planning a move, I wouldn’t wait to see if the interest rate will drop another tenth of a percent. I believe we will see home prices and interest rates move upward in 2011.”

Home valuations
One of the biggest areas of contention has been home valuations.

“The correction in the real estate market has a lot of people slow to accept the fact that the current value of their home is a realty,” indicated Knez.

Home building trends
According to Chris Tsonton, president of Pepperwood Signature Homes and the 2011 president of the Home Builders Association of Greater Cleveland, 2011 will be a great time to build for those who have bought lots and have been sitting on them for a few years. “Rates are at all-time historic lows and materials and labor are affordable.”

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