We’ve been watching the market for a few years now with so much rollercoaster activity – and each year our marketplace gets stronger and stronger. Here we are in 2013 and I can say that the next 11+ months are slated to be even better than the previous year. Here are my predictions for what I expect to happen in the coming months and year.
Home Prices Will Rise Even More
We saw prices fluctuate considerably over the past several years within our marketplace. We can expect home prices to rise more so in some areas than others. Another factor is that we will see a lot more cash buyers and with fewer lenders involved, we can expect appraisals that are truer to actual values.
Resale Inventory Continues to Dwindle
With each year of historically low interest rates we will continue to see lower inventory levels across the board. Along with that we will also see a continued increase in sale prices, higher demand and a lot more move-up buyers.
New Construction Makes a Comeback
With developers’ company stocks on the rise and consumer confidence getting stronger we can expect more and more new builds to pop up. In fact, developers are purchasing land at lower prices allowing them to pass on those savings to the end client.
Government Programs Continue to Support the Housing Industry
The cornerstone of a recovering market is creating leeway for those in distress. Now that the fiscal cliff crisis is resolved in several areas (spending cuts are yet to be discussed), distressed homeowners can expect to receive relief from government programs such as HAMP, HAFA and other loan modification and foreclosure alternative programs.
Mortgage Debt Forgiveness Relief Act Extended
When writing these predictions, it had not yet happened but the government has since extended this important tax relief act that allows homeowners that have gone through a short sale to be forgiven tax liability on the otherwise considered taxable income. As of now, the Act has been extended through December 31, 2013.
Foreclosure Review Program Will Reveal Fraudulent Activity
We will see increased cases of program abuse and fraud when it comes to the government foreclosure review program. Irresponsible lenders that took advantage of unsuspecting borrowers will start to come to the surface in 2013.
Banks Will Favor Short Sales to Foreclosures
With the significant costs involved with pursuing foreclosures, banks will increasingly prefer short sales to foreclosures. Shorter time periods, a seeming win-win situation for all and a greater boost to the housing industry are all reasons this will be a recipe for success in terms of distressed properties.
National MLS Might Be Coming Soon
With the large national property websites that house public records and outdated records, we are seeing more and more interest build in a national MLS that would cater to buyers in all areas.
Real Estate Licensing Bar Will Be Raised
Anyone from down the street can go and get a real estate license. But with the bar raised, we can expect more and more formal requirements and restrictions in order to obtain a license to practice real estate.
Multiple Offers Will Create Bidding Wars
With the heightened interest and demand, sellers will be able to creatively list their homes priced about 10% lower than actual market value. This creates about 60% more buyers viewing the property, resulting in more offers that result in a bidding war.
If you want more information on any of these predictions or if you would like to discuss your real estate goals – contact us today. We look forward to hearing from you!
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