28 Jan What’s Trending in Real Estate for 2013
As 2012 drew to a close, the real estate market heated up in a way that hadn’t been seen in years. In fact, Trulia conducted a survey last summer where they asked local residents how they thought home prices might rise in the area. In their survey, 61% of respondents said they believe prices will rise in 2013, while 58% believe prices will take 10 years or less to return to pre-recession peaks. All of this is good news for the real estate industry as 2013 gets underway. Here’s a look at what’s trending in real estate for 2013!
Rents on the Rise: Renting has been a go-to housing option for many young people throughout the recession. While many plan to wait for the real estate market to return to its former glory, rents continue to go up around the country.
Inventory’s Effect on Home Prices: Overall, inventory levels are suppressed. Many sellers have been reluctant to list their homes for sale, and inventory levels are at their lowest levels since February 2006. This has pushed prices up everywhere, and that trend is expected to continue in 2013.
More First-Time Buyers: This year, first-time buyers will drive the demand for single-family homes. In November, the NAR surveyed buyers and sellers and found that 39% of borrowers were purchasing homes for the first time, an increase of 37% from their 2011 survey.
Where are the Foreclosures?: The market was once saturated with foreclosure after foreclosure, but they’re becoming more and more extinct. This has a lot to do with the Federal Housing Finance Agency (FHFA), the Federal Deposit Insurance Corporation, and banks who have changed their tune with regard to how they handle foreclosures. Now, they’re bulk-selling troubled homes to buyers who agree to work with the original borrowers, preventing them from having to foreclose.
Increase in Short Sales: Many experts agree there will be an increase in short sales this year. That’s because more lenders are realizing that a short sale trumps a foreclosure when it comes to cost and duration.