What does home buying look like in 2013 for those who have been sitting on the sidelines?
Some have called the real estate recovery ‘uneven’, while others point out the housing market in many cities has already found bottom and has been improving for well over 18 months. So what should those contemplating buying a home next year expect to see happening?
While 2012 has still seen its share of foreclosures the latest round of data shows incredible improvement in the nation’s housing market with positive growth in home values in over 80% of major metropolitan areas.
There is no doubt that the year was hampered but uncertainty over the November election but now that is out of the way and more money is flowing experts are forecasting even more good things for the real estate market in the months ahead.
In fact, Zillow recently forecast an almost 10% rise in the average home price by June 2013, though many cities could continue to leap by double digits on increased investment and as Americans recognize the chance to get the best deal on buying a home is quickly fleeting away.
Mortgages may still be tricky and will take some months to loosen up, but banks are adding thousands of staff to home loan departments in anticipation of a rush. Interest rates may still be low now but as the market improves there is no question they will begin to rise, adding thousands to the cost of buying the same home later.
The bottom line is that while there are still foreclosures to be worked through and still some work to be done in getting the economy surging again we are definitely on the verge of entering a new boom period.
This means home values on an upward swing for another 10 to 20 years, adding to the $760 billion in equity homeowners have already gained in the last 12 months. This means a great opportunity for buying a home, not just for avoiding rising rents and saving money but for building wealth too.
