A recent article from CNN and Fortune, here, provides some expectations for 2013 in the world of real estate and housing.
- Property prices will rise: the markets have hit bottom on prices; demand is slowly improving and housing inventories are shrinking, albeit slowly.
- The fate of housing is more directly dependent on employment and job prospects: for activity to proceed at a positive pace, the national and regional employment rates have to continue to improve.
- Delinquency rates will continue to decline: payment delinquencies have been declining since 2009 and this will continue
- Interest rates will remain low: the Federal Reserve has committed the national economy to at least a year and a half of artificially low short-term interest rates.
- First-time home buyers will return in greater numbers compared to recent years: the number of first-time buyers (typically 25-34 year olds) will increase as job prospects improve and the ratio of cost-of-ownership vs. cost-of-renting declines; the report claims that it is now cheaper to own than to rent in some markets.
You can see the complete article at http://money.cnn.com/gallery/real_estate/2012/12/27/housing-market-predictions.fortune/index.html