Now is the time people start wondering how the 2013 housing market will be. The current market condition is great as most of us already know, but will it continue to improve as we roll over to a new year? Lately I’ve been asked the same question from many of my clients. The conversation starts by discussing homes they are interested in and how the market condition is, then the question arises. “What will the market be like in 2013″, says one client to another. From my perspective as a realtor, there is no doubt that the 2013 market will start off fantastic. However, we must know that everything we buy comes with the risk of losing or gaining value in the item we purchase. It’s the same concept with anything we buy. We wait for something to go on sale because we want to make the most of what we pay for. It’s understandable, but in some cases other people might purchase it before you.
Speaking with experience in this industry, I have seen so many people pass up great opportunities as they wait and wait for the market to rise. Of course getting a home for a good deal is ideal, but what is more important is purchasing a home you love. For those of you who need another professional perspective with the 2013 market before you think about buying, continue with your reading below by my good friend of mine, Gino Blefari:
What better end to the year could housing ask for? Home sales and prices are up on average across markets. Inventory is low, but housing stats are up. Mortgage rates remain at rock bottom – and the Fed said at its meeting this month that it doesn’t anticipate raising rates any time soon.
The stars have aligned. The door to recovery is now wide open.
The September Home Price Index tracked by Lender Processing Services showed a 3.6% year-over-year increase since last September. In addition, the index rose 4.9% since the beginning of the year.
California and New York led the states with a 0.4% month-over-month increase, and Washington, D.C. led metros with a 0.6% increase from August. The largest monthly increases in the home price index took place in Arizona, Washington, D.C., Georgia, Delaware and Maryland, with Arizona holding the largest year-to-date increase at 14.4% since January.
In mortgage rates, we continue to see fantastic borrowing rates for home buyers. Average rates on a 30-year fixed-rate mortgage hit a new low of 3.31% last week, and average rates on a 15-year fixed-rate mortgage also hit a new record low of 2.63%, Freddie Mac said in its latest weekly report.
In its quest to use monetary policy to help the recovery, the Federal Reserve board indicated at its November meeting that it would not be raising rates in the foreseeable future. In fact, Fed Chairman Ben Bernanke suggested that the Fed will keep trying to push down long-term interest rates through 2013.
As we enter 2013, inventory will be of concern in many markets that have struggled to keep up with demand. But things will be looking up next year in most markets. In fact, Daren Bloomquist of RealtyTrac said at a housing symposium in San Francisco this month that underwater homeowners are more likely to sell as prices rise next year, which will help inventory levels.
At the same symposium, Ken Rosen, an economics professor at UC Berkeley, declared housing is in recovery mode now and through next year, though he’s not anticipating a boom in sales.
Things to watch next year will be jobs and income levels, both of which have the strongest impact on housing than any other indicator.
The forecast, overall, is looking optimistic for real estate. Some markets, like ours here in Silicon Valley are already enjoying near-peak activity and pricing. Others are just starting to pull themselves up. Either way, 2013 is going to be a solid year for housing.
For an update of the market, contact Mike @ 408-342-3125.