The Market - What to Expect
The national housing market made a strong rebound in 2012 and that positive trend is expected to continue in the New Year.
Although interest rates have been at historic lows, they have not been the driving force behind this recovery. There's no single factor driving this market. It's been a combination of low prices, low inventory, improving consumer confidence and a huge pent-up demand. That was true throughout 2012 and will continue to be true in 2013.
Many consumers now understand what real estate professionals have known for the last year, a number of related factors have combined to create a favorable opportunity for home buyers and investors to purchase residential properties.
Real Estate - 2013 is Unique
The 2013 situation is so unique that those of us who have worked in real estate for many years have never seen opportunities like this.
Top 10 Real Estate Predictions for the national real estate market in 2013 are:
- More Home Buyers and Selleres come back to the market.
- Homes Sales will rise by 6-7% and Prices rise by 3-4%
- The inventory of homes for sale will hit a bottom.
- Higher priced homes begin to sell.
- Distressed property numbers continue to fall.
- Shadow inventory continues to fall.
- The number of Short Sale closings will rise to a peak.
- Record low mortgage rates rise slightly by year-end.
- Lending remains tight.
- Home affordability remains the best in years.
Recovery - Down the Road
Recovery is fragile and still faces some obstacles. Tight lending, government regulation and the overall economy still have the potential to negatively impact housing.
If housing can stay on the road to recovery, it's possible that it can pull the rest of the economy along with it.
We are advocates for the home buying and selling consumer, and real estate professionals. We support reforms aimed at helping troubled homeowners avoid foreclosure and streamlining the Short Sale process.
We need a continuation of mortgage interest deductions, an extension of the Debt Relief Act and more reasonable regulations on mortgage lending.
The Fiscal Cliff Agreement left the deductions mostly intact and extended the Debt Relief Act until the end of 2013.
These moves support the American dream of home ownership, help distressed families avoid foreclosure and promote a sustainable housing recovery.