Are you thinking about buying or selling your home, but are just not sure that the timing is right? The real estate market has had it's share of ups and downs over the past few years. As the below article from Florida Realtors® states, industry experts are expecting good things ahead and now could be a good time for you to make your move!
Real estate pros expect good things in 2013
WASHINGTON – Jan. 7, 2013 – A lot of things could happen on the cusp of 2013, but most real estate experts predict an improving recovery for most local U.S. markets.
One variable that’s hard to predict: How long will homeowners hold off listing their home? Many owners have wanted to move for a while, but they’ve been afraid to move forward because they’re underwater or their home is worth less than they wish. As prices recover, when will these homeowners jump into the market?
By the end of 2012, many potential buyers believed that housing values had hit bottom, and – coupled with a fear that record-low mortgage rates could again rise – jumped into the market. An increase in buyers and decrease in inventory kicked off home price increases in many markets and even bidding wars. The number and timing of new listings could slow that process down.
Even so, economists and analysts interviewed by Forbes call for 3.1 percent price appreciation in 2013, and a seller’s market as more buyers enter the market and owners continue to hold off for even higher selling prices.
Mortgage rates should also remain low at least through early 2013, as The Federal Reserve stays actively involved, seeing a housing market rebound as key to a complete U.S. economic recovery. Low rates allow buyers with modest budgets to stay competitive even if home prices rise. At the close of 2012, rates hovered around 3.34 percent.
“Mortgage rates started the year near record lows which should continue to aid the ongoing housing recovery,” says Freddie Mac vice president and chief economist Frank Nothaft.
In the latest Pending Home Sales Index released by the National Association of Realtors® (NAR), homes under contract reached the highest level in two-and-a-half years. Pending home sales rose 1.7 percent to 106.4 in November from a downwardly revised 104.6 in October. Year-to-year, pending home sales rose 9.8 percent. On a year-over-year basis, pending home sales have risen for 19 consecutive months.
“Even with market frictions related to the mortgage process, home contract activity continues to improve. Home sales are recovering now based solely on fundamental demand and favorable affordability conditions,” says Lawrence Yun, NAR chief economist.
Yun predicts that existing-home sales should rise 8 to 9 percent in 2013 to approximately 5.1 million, following a 10 percent gain expected for all of 2012. He predicts that the median existing-home price should rise just over 4 percent in 2013, after rising more than 7 percent in 2012.
© 2013 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.