We have seen the worst state of real estate market, not only affecting one particular area, but a global real estate crisis. It’s a good thing that the past few months has given hope to both buyers and sellers. The said industry is indeed heading to a brighter condition. The home prices last year rose to about 7.5 percent. That was actually the largest increase in the period of six years. And in 2013, it is set to rise for 6 percent more, according to market researcher CoreLogic. The prediction was reported last Monday.
Although the prediction is just a mere guess, well maybe an educated guess, a lot of people are indeed hopeful. The signs and signals are indeed positive for the real estate market. And even though the increase is not quite definite yet, not until the year ends again by December, we are looking into different factors that will definitely help in the increase of prices for this year.
Factors Effecting Home Prices
The same forces or factors that helped last year’s propel in prices will play a role in 2013. Some of these are the improved housing demand all thanks to the good affordability of homes, lesser number of foreclosed properties for sale, and of course, low inventory for unsold homes, said CoreLogic.
One of the major forces that have increased home prices last year are the fewer distressed home sales. According to records, sales of bank-owned homes fell to more than 20 perfect. This amounts to 600,000. Now would you look at that? At the earlier period of 2012, real estate analysts were expecting a great number of foreclosed homes to be enlisted on the market. This was due to the five major lenders reaching for settlement over the foreclosed practices with the state, federal offices, or the government as a whole. Fortunately, it did not come about.
Short sales have also built up the real estate market. In the overall home sales, there are about 23 percent for short sales alone. This number is said to be the highest level since the real estate market fell to the pits of the dark days. For those who do not know, a short sale is when the banks allow the house to be sold less than what’s owned on the mortgage loan. This somehow helps the buyers and sellers at the same time.
Listing Prospects for Homes in 2013
The rising of home prices should encourage more sellers to put their homes on the list of sales for 2013, Corelogic says. In November last year, the supply of homes for sale in the market fell to 4.8. This was shown on the records of the National Association of Realtors. That is the lowest level in more or less seven years. The six-month supply is considered as a way of balancing the buyers and the sellers.
Nationwide Realtors generally seem to be echoing the cautiously optimistic outlook. In Northern New Jersey Realtor Sue Adler reports noticeable market quickening with flat inventory and increasing interest from both buyers and sellers.
For more information on the report from Corelogic, click here. And for the best local market information or a free comparative analysis contact us today.