Whether its perception or reality, the real estate market in 2010 won't be much better than in 2009, some panelists said at the 2009 Boulder Valley Real Estate Conference & Forecast.

Perception and reality are one in the same in this recession, and the short-term outlook is grim, but it doesn't mean deals aren't being finalized.

Patrick Dolan, a Re/Max of Boulder Inc. Realtor, said he thinks the housing market is near the bottom considering the inventory, loan rates and sellers' willingness to make deals.

Dolan was joined by William Graff, a commercial appraiser; Kyle Heckman, Flatirons Bank president; Craig Ockers, The Colorado Group realtor; and Beat Steiner, Holland & Hart LLP administrative partner during a Perception vs. Reality panel discussion Thursday afternoon at the Millennium Harvest House Boulder.

One perception is that it's hard to get a loan. And it is, the panelists said.

Whether commercial or residential real estate, lenders are keeping a tight grip on their money.

But Steiner said many banks are restricted as to what they can do with their money, which in turn limits what borrowers can work with.

In today's environment, buyers are picky, sellers are desperate, lenders are hesitant and brokers are trying to bring everyone together to make a deal, the panelists said.

And even with interest rates low, buyers still aren't happy. Buyers who were formerly happy with a 13 percent interest rate for the majority of their loan now complain if they can only get an interest rate of 5 percent.

And the day of lenders competing for loans is gone, Ockers said. Now people are lucky if they can get money for a deal.

Despite the tough times, Dolan thinks people will look back in five years and think about how 2009 was a great year to buy real estate.

But in the present, times will remain tough.

Many people are currently white-knuckled, and some developers, contractors and bankers are bound to fall off the cliff in 2010, Steiner said.