A new year means new opportunity and 2013 promises to have a lot in store for the housing market. With marked gains this year, housing experts expect the housing market to continue to gain momentum in the New Year.
What could be driving more home sales in 2013?
- Optimism is rising when it comes to increasing home values. More buyers are seeing real estate as a good investment and Millennials are set to be a driving force of first-time home buyers.
- Despite the recent rocky economy, new households are still forming. Newlyweds still want to buy their first home together and growing families are still in need of more room to grow.
- Interest rates are expected to remain low in 2013, creating an increase in loan demand for home purchases. With more demand, housing values should rise and equity will return, leaving fewer homeowners underwater.
In addition to the positives, there are still challenges ahead for 2013. Lending remains tight, there’s a large foreclosure backlog, and regulatory challenges and the fiscal cliff loom ahead. The major housing issues likely to be important in the New Year include:
- Rising Inventories: Demand is rising and home builders are increasing production while more sellers may be more willing to test the market as housing prices increase.
- Home prices spur demand: As rents rise, housing values rise, and mortgage rates remain low, more buyers have a sense of urgency with home purchases.
- Credit remains tight: New regulations may lock in some of the defensive underwriting posture, making it harder to obtain a loan.
- Broader economy dictates how far recovery goes: If unemployment decreases and the economy improves, many of the biggest challenges facing the housing market would likely fade.
Real estate continues to be a contributing factor to an overall economic recovery and real estate does appear to have a bright future in 2013. If you ever have any questions about the current real estate market, are interested in buying or selling a home, or want to learn the value of your home, please give me a call. Your neighborhood Realtor®. I'm licensed in the State of PA.
Weichert, Realtors - Media
606 E. Baltimore Pike