Housing Market Update January 9, 2013
National Real Estate Trends Update January 9, 2013
Residential Real Estate Housing Markets are the real estate markets that most effect every day Americans. These markets raise several different questions for Americans. Is now a good time to buy a house? Is a good time to sell my house? What is the housing market in my state, region or city like right now? Are the current mortgage interest rates favorable to borrowers?
According to a recent issue of Forbes magazine, the housing market is making a recovery. Home prices have stabilized in almost every state. In many states prices have started to increase slightly.
According to The Fiscal Times newsletter, home prices should continue to rise slightly in 2013. Because the economic recovery is underway and fewer new homes have been built in the last four years. Because fewer new homes have been built, the value of existing homes has risen. More importantly, the demand for existing homes has risen.
With stable housing prices and a strong demand for existing homes, mortgage rates are the next key to the residential real estate market. Interest rates for new mortgages reached historic lows in 2012. For the most part, these rates should remain low for most of 2013.
Housing prices and real estate markets are driven by supply and demand. As previously stated, the slow construction market of the past four years has created a smaller supply of new homes. Also, during the past three to four years many prospective buyers postponed the purchase of a new home. Many young Americans postponed the purchase of their first home. As the economy has stabilized, worries about job stability have subsided. In 2013, many of the buyers who postponed purchasing a home will once again enter the real estate market.
But buyers are only half of the equation. What about sellers? Will 2013 be the year that more homes are put up for sale? According to a recent article in the Wall Street Journal, it will be. Some homeowners elected to ride out the economic downturn, before putting their homes up for sale. They wanted to be sure they could sell their homes for a realistic price, so they patiently waited for the economy of the country to improve. Also, as homeowners relocate for employment opportunities, they will put their homes up for sale. One other source of homes for sell, in the 2013 market is foreclosures. In some areas of the country there have been record numbers of mortgage foreclosures in the past few years. Mortgage companies and banks are making strong efforts to sell these homes.
The Urban Land Institute issues an annual report on the real estate market. This report, Emerging Trends in Real Estate 2013, is compiled by real estate and financial experts across the country. The report states there will be modest increases in prices in 2013. It also predicts the residential housing market will continue to improve in 2013, but will do so at a slow, gradual pace.
The real estate market has so many parts and facets; it can be difficult for both buyers and sellers to navigate, alone. A real estate professional, whether broker or agent, can be an invaluable resource for anyone navigating the residential real estate market in 2013. Real estate professionals have extensive knowledge in their local cities and communities. They also have relationships with other real estate professionals, mortgage lenders and property inspectors. These relationships are assets that anyone in the residential real estate market should take advantage of.